Correlation Between HelloFresh and ZALANDO SE
Can any of the company-specific risk be diversified away by investing in both HelloFresh and ZALANDO SE 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 HelloFresh and ZALANDO SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HelloFresh SE and ZALANDO SE ADR, you can compare the effects of market volatilities on HelloFresh and ZALANDO SE 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 HelloFresh with a short position of ZALANDO SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HelloFresh and ZALANDO SE.
Diversification Opportunities for HelloFresh and ZALANDO SE
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HelloFresh and ZALANDO is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding HelloFresh SE and ZALANDO SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZALANDO SE ADR and HelloFresh 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 HelloFresh SE are associated (or correlated) with ZALANDO SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZALANDO SE ADR has no effect on the direction of HelloFresh i.e., HelloFresh and ZALANDO SE go up and down completely randomly.
Pair Corralation between HelloFresh and ZALANDO SE
Assuming the 90 days horizon HelloFresh SE is expected to generate 2.65 times more return on investment than ZALANDO SE. However, HelloFresh is 2.65 times more volatile than ZALANDO SE ADR. It trades about 0.11 of its potential returns per unit of risk. ZALANDO SE ADR is currently generating about 0.07 per unit of risk. If you would invest 611.00 in HelloFresh SE on September 1, 2024 and sell it today you would earn a total of 589.00 from holding HelloFresh SE or generate 96.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
HelloFresh SE vs. ZALANDO SE ADR
Performance |
| Timeline |
| HelloFresh SE |
| ZALANDO SE ADR |
HelloFresh and ZALANDO SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HelloFresh and ZALANDO SE
The main advantage of trading using opposite HelloFresh and ZALANDO SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HelloFresh position performs unexpectedly, ZALANDO SE 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 ZALANDO SE will offset losses from the drop in ZALANDO SE's long position.| HelloFresh vs. Biglari Holdings | HelloFresh vs. Potbelly Co | HelloFresh vs. Restaurant Brands International | HelloFresh vs. Red Robin Gourmet |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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