Correlation Between CODERE ONLINE and General Mills
Can any of the company-specific risk be diversified away by investing in both CODERE ONLINE and General Mills 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 CODERE ONLINE and General Mills into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CODERE ONLINE LUX and General Mills, you can compare the effects of market volatilities on CODERE ONLINE and General Mills 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 CODERE ONLINE with a short position of General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of CODERE ONLINE and General Mills.
Diversification Opportunities for CODERE ONLINE and General Mills
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CODERE and General is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CODERE ONLINE LUX and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills and CODERE ONLINE 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 CODERE ONLINE LUX are associated (or correlated) with General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of CODERE ONLINE i.e., CODERE ONLINE and General Mills go up and down completely randomly.
Pair Corralation between CODERE ONLINE and General Mills
Assuming the 90 days horizon CODERE ONLINE LUX is expected to generate 3.02 times more return on investment than General Mills. However, CODERE ONLINE is 3.02 times more volatile than General Mills. It trades about 0.03 of its potential returns per unit of risk. General Mills is currently generating about 0.01 per unit of risk. If you would invest 705.00 in CODERE ONLINE LUX on September 3, 2024 and sell it today you would earn a total of 5.00 from holding CODERE ONLINE LUX or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CODERE ONLINE LUX vs. General Mills
Performance |
| Timeline |
| CODERE ONLINE LUX |
| General Mills |
CODERE ONLINE and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CODERE ONLINE and General Mills
The main advantage of trading using opposite CODERE ONLINE and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CODERE ONLINE position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| CODERE ONLINE vs. Adtalem Global Education | CODERE ONLINE vs. BW OFFSHORE LTD | CODERE ONLINE vs. DeVry Education Group | CODERE ONLINE vs. Strategic Education |
| General Mills vs. BOS BETTER ONLINE | General Mills vs. CODERE ONLINE LUX | General Mills vs. Japan Asia Investment | General Mills vs. Chuangs China Investments |
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 Stocks Directory module to find actively traded stocks across global markets.
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