Correlation Between AIRBNB INC and Delivery Hero
Can any of the company-specific risk be diversified away by investing in both AIRBNB INC and Delivery Hero at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AIRBNB INC and Delivery Hero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIRBNB INC DL 01 and Delivery Hero SE, you can compare the effects of market volatilities on AIRBNB INC and Delivery Hero and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AIRBNB INC with a short position of Delivery Hero. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRBNB INC and Delivery Hero.
Diversification Opportunities for AIRBNB INC and Delivery Hero
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AIRBNB and Delivery is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding AIRBNB INC DL 01 and Delivery Hero SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delivery Hero SE and AIRBNB INC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AIRBNB INC DL 01 are associated (or correlated) with Delivery Hero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delivery Hero SE has no effect on the direction of AIRBNB INC i.e., AIRBNB INC and Delivery Hero go up and down completely randomly.
Pair Corralation between AIRBNB INC and Delivery Hero
Assuming the 90 days horizon AIRBNB INC DL 01 is expected to generate 0.72 times more return on investment than Delivery Hero. However, AIRBNB INC DL 01 is 1.4 times less risky than Delivery Hero. It trades about 0.04 of its potential returns per unit of risk. Delivery Hero SE is currently generating about 0.02 per unit of risk. If you would invest 8,869 in AIRBNB INC DL 01 on August 30, 2024 and sell it today you would earn a total of 4,279 from holding AIRBNB INC DL 01 or generate 48.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIRBNB INC DL 01 vs. Delivery Hero SE
Performance |
| Timeline |
| AIRBNB INC DL |
| Delivery Hero SE |
AIRBNB INC and Delivery Hero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRBNB INC and Delivery Hero
The main advantage of trading using opposite AIRBNB INC and Delivery Hero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRBNB INC position performs unexpectedly, Delivery Hero can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Delivery Hero will offset losses from the drop in Delivery Hero's long position.| AIRBNB INC vs. Alphabet Class A | AIRBNB INC vs. Alphabet Class A | AIRBNB INC vs. Alphabet | AIRBNB INC vs. Meta Platforms |
| Delivery Hero vs. American Homes 4 | Delivery Hero vs. Aedas Homes SA | Delivery Hero vs. TIANDE CHEMICAL | Delivery Hero vs. Westlake Chemical |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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