Correlation Between Baozun and Allegroeu
Can any of the company-specific risk be diversified away by investing in both Baozun and Allegroeu 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 Baozun and Allegroeu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baozun Inc and Allegroeu SA, you can compare the effects of market volatilities on Baozun and Allegroeu 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 Baozun with a short position of Allegroeu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baozun and Allegroeu.
Diversification Opportunities for Baozun and Allegroeu
Pay attention - limited upside
The 3 months correlation between Baozun and Allegroeu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baozun Inc and Allegroeu SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegroeu SA and Baozun 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 Baozun Inc are associated (or correlated) with Allegroeu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegroeu SA has no effect on the direction of Baozun i.e., Baozun and Allegroeu go up and down completely randomly.
Pair Corralation between Baozun and Allegroeu
If you would invest 750.00 in Allegroeu SA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Allegroeu SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baozun Inc vs. Allegroeu SA
Performance |
| Timeline |
| Baozun Inc |
| Allegroeu SA |
Baozun and Allegroeu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baozun and Allegroeu
The main advantage of trading using opposite Baozun and Allegroeu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baozun position performs unexpectedly, Allegroeu 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 Allegroeu will offset losses from the drop in Allegroeu's long position.| Baozun vs. PDD Holdings | Baozun vs. JD Inc Adr | Baozun vs. Global E Online | Baozun vs. Vipshop Holdings Limited |
| Allegroeu vs. PDD Holdings | Allegroeu vs. JD Inc Adr | Allegroeu vs. Baozun Inc | Allegroeu vs. Global E Online |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |