Correlation Between PDD Holdings and Reebonz Holding
Can any of the company-specific risk be diversified away by investing in both PDD Holdings and Reebonz Holding 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 Reebonz Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDD Holdings and Reebonz Holding, you can compare the effects of market volatilities on PDD Holdings and Reebonz Holding 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 Reebonz Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDD Holdings and Reebonz Holding.
Diversification Opportunities for PDD Holdings and Reebonz Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PDD and Reebonz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PDD Holdings and Reebonz Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reebonz Holding 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 Reebonz Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reebonz Holding has no effect on the direction of PDD Holdings i.e., PDD Holdings and Reebonz Holding go up and down completely randomly.
Pair Corralation between PDD Holdings and Reebonz Holding
If you would invest 0.01 in Reebonz Holding on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Reebonz Holding 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. Reebonz Holding
Performance |
| Timeline |
| PDD Holdings |
| Reebonz Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PDD Holdings and Reebonz Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PDD Holdings and Reebonz Holding
The main advantage of trading using opposite PDD Holdings and Reebonz Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDD Holdings position performs unexpectedly, Reebonz Holding 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 Reebonz Holding will offset losses from the drop in Reebonz Holding's long position.| PDD Holdings vs. Alibaba Group Holding | PDD Holdings vs. Sea | PDD Holdings vs. MercadoLibre | PDD Holdings vs. Vipshop Holdings Limited |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |