Correlation Between H2O Retailing and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both H2O Retailing and CEWE Stiftung 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 H2O Retailing and CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H2O Retailing and CEWE Stiftung Co, you can compare the effects of market volatilities on H2O Retailing and CEWE Stiftung 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 H2O Retailing with a short position of CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of H2O Retailing and CEWE Stiftung.
Diversification Opportunities for H2O Retailing and CEWE Stiftung
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between H2O and CEWE is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding H2O Retailing and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung and H2O Retailing 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 H2O Retailing are associated (or correlated) with CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of H2O Retailing i.e., H2O Retailing and CEWE Stiftung go up and down completely randomly.
Pair Corralation between H2O Retailing and CEWE Stiftung
Assuming the 90 days horizon H2O Retailing is expected to generate 4.11 times less return on investment than CEWE Stiftung. In addition to that, H2O Retailing is 2.02 times more volatile than CEWE Stiftung Co. It trades about 0.03 of its total potential returns per unit of risk. CEWE Stiftung Co is currently generating about 0.26 per unit of volatility. If you would invest 9,930 in CEWE Stiftung Co on October 9, 2024 and sell it today you would earn a total of 430.00 from holding CEWE Stiftung Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
H2O Retailing vs. CEWE Stiftung Co
Performance |
| Timeline |
| H2O Retailing |
| CEWE Stiftung |
H2O Retailing and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H2O Retailing and CEWE Stiftung
The main advantage of trading using opposite H2O Retailing and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H2O Retailing position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| H2O Retailing vs. PEPKOR LTD | H2O Retailing vs. Superior Plus Corp | H2O Retailing vs. NMI Holdings | H2O Retailing vs. SIVERS SEMICONDUCTORS AB |
| CEWE Stiftung vs. Comba Telecom Systems | CEWE Stiftung vs. COMBA TELECOM SYST | CEWE Stiftung vs. Planet Fitness | CEWE Stiftung vs. INTERSHOP Communications Aktiengesellschaft |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |