Correlation Between 24SEVENOFFICE GROUP and Rocket Internet
Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP and Rocket Internet 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 24SEVENOFFICE GROUP and Rocket Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and Rocket Internet SE, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP and Rocket Internet 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 24SEVENOFFICE GROUP with a short position of Rocket Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and Rocket Internet.
Diversification Opportunities for 24SEVENOFFICE GROUP and Rocket Internet
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 24SEVENOFFICE and Rocket is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB and Rocket Internet SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rocket Internet SE and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB are associated (or correlated) with Rocket Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rocket Internet SE has no effect on the direction of 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and Rocket Internet go up and down completely randomly.
Pair Corralation between 24SEVENOFFICE GROUP and Rocket Internet
Assuming the 90 days horizon 24SEVENOFFICE GROUP AB is expected to generate 2.59 times more return on investment than Rocket Internet. However, 24SEVENOFFICE GROUP is 2.59 times more volatile than Rocket Internet SE. It trades about 0.09 of its potential returns per unit of risk. Rocket Internet SE is currently generating about -0.03 per unit of risk. If you would invest 46.00 in 24SEVENOFFICE GROUP AB on September 12, 2024 and sell it today you would earn a total of 151.00 from holding 24SEVENOFFICE GROUP AB or generate 328.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
24SEVENOFFICE GROUP AB vs. Rocket Internet SE
Performance |
| Timeline |
| 24SEVENOFFICE GROUP |
| Rocket Internet SE |
24SEVENOFFICE GROUP and Rocket Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 24SEVENOFFICE GROUP and Rocket Internet
The main advantage of trading using opposite 24SEVENOFFICE GROUP and Rocket Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP position performs unexpectedly, Rocket Internet 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 Rocket Internet will offset losses from the drop in Rocket Internet's long position.| 24SEVENOFFICE GROUP vs. Salesforce | 24SEVENOFFICE GROUP vs. Superior Plus Corp | 24SEVENOFFICE GROUP vs. SIVERS SEMICONDUCTORS AB | 24SEVENOFFICE GROUP vs. Norsk Hydro ASA |
| Rocket Internet vs. Salesforce | Rocket Internet vs. Superior Plus Corp | Rocket Internet vs. SIVERS SEMICONDUCTORS AB | Rocket Internet vs. Norsk Hydro ASA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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