Correlation Between PDD Holdings and Cnova NV
Can any of the company-specific risk be diversified away by investing in both PDD Holdings and Cnova NV 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 PDD Holdings and Cnova NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDD Holdings and Cnova NV, you can compare the effects of market volatilities on PDD Holdings and Cnova NV 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 PDD Holdings with a short position of Cnova NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDD Holdings and Cnova NV.
Diversification Opportunities for PDD Holdings and Cnova NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PDD and Cnova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PDD Holdings and Cnova NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnova NV and PDD Holdings 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 PDD Holdings are associated (or correlated) with Cnova NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnova NV has no effect on the direction of PDD Holdings i.e., PDD Holdings and Cnova NV go up and down completely randomly.
Pair Corralation between PDD Holdings and Cnova NV
If you would invest 295.00 in Cnova NV on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Cnova NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
PDD Holdings vs. Cnova NV
Performance |
| Timeline |
| PDD Holdings |
| Cnova NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PDD Holdings and Cnova NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PDD Holdings and Cnova NV
The main advantage of trading using opposite PDD Holdings and Cnova NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDD Holdings position performs unexpectedly, Cnova NV 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 Cnova NV will offset losses from the drop in Cnova NV's long position.| PDD Holdings vs. Alibaba Group Holding | PDD Holdings vs. Sea | PDD Holdings vs. MercadoLibre | PDD Holdings vs. Vipshop Holdings Limited |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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