Correlation Between Delivery Hero and Phonex
Can any of the company-specific risk be diversified away by investing in both Delivery Hero and Phonex 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 Delivery Hero and Phonex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delivery Hero SE and Phonex Inc, you can compare the effects of market volatilities on Delivery Hero and Phonex 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 Delivery Hero with a short position of Phonex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delivery Hero and Phonex.
Diversification Opportunities for Delivery Hero and Phonex
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Delivery and Phonex is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Delivery Hero SE and Phonex Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phonex Inc and Delivery Hero 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 Delivery Hero SE are associated (or correlated) with Phonex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phonex Inc has no effect on the direction of Delivery Hero i.e., Delivery Hero and Phonex go up and down completely randomly.
Pair Corralation between Delivery Hero and Phonex
Assuming the 90 days horizon Delivery Hero SE is expected to generate 0.91 times more return on investment than Phonex. However, Delivery Hero SE is 1.1 times less risky than Phonex. It trades about 0.05 of its potential returns per unit of risk. Phonex Inc is currently generating about -0.02 per unit of risk. If you would invest 2,888 in Delivery Hero SE on September 13, 2024 and sell it today you would earn a total of 412.00 from holding Delivery Hero SE or generate 14.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Delivery Hero SE vs. Phonex Inc
Performance |
| Timeline |
| Delivery Hero SE |
| Phonex Inc |
Delivery Hero and Phonex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delivery Hero and Phonex
The main advantage of trading using opposite Delivery Hero and Phonex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delivery Hero position performs unexpectedly, Phonex 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 Phonex will offset losses from the drop in Phonex's long position.| Delivery Hero vs. ZALANDO SE ADR | Delivery Hero vs. Cellnex Telecom SA | Delivery Hero vs. Jd Com Inc | Delivery Hero vs. Galaxy Entertainment Group |
| Phonex vs. Delivery Hero SE | Phonex vs. 1StdibsCom | Phonex vs. Natural Health Trend | Phonex vs. Emerge Commerce |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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