Correlation Between ZALANDO SE and Cnova NV
Can any of the company-specific risk be diversified away by investing in both ZALANDO SE 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 ZALANDO SE and Cnova NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZALANDO SE ADR and Cnova NV, you can compare the effects of market volatilities on ZALANDO SE 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 ZALANDO SE with a short position of Cnova NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZALANDO SE and Cnova NV.
Diversification Opportunities for ZALANDO SE and Cnova NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZALANDO and Cnova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ZALANDO SE ADR and Cnova NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnova NV and ZALANDO SE 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 ZALANDO SE ADR 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 ZALANDO SE i.e., ZALANDO SE and Cnova NV go up and down completely randomly.
Pair Corralation between ZALANDO SE 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 |
ZALANDO SE ADR vs. Cnova NV
Performance |
| Timeline |
| ZALANDO SE ADR |
| Cnova NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ZALANDO SE and Cnova NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZALANDO SE and Cnova NV
The main advantage of trading using opposite ZALANDO SE and Cnova NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZALANDO SE 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.| ZALANDO SE vs. ASOS Plc | ZALANDO SE vs. BoohooCom PLC ADR | ZALANDO SE vs. Allegroeu SA | ZALANDO SE vs. AKA Brands Holding |
| Cnova NV vs. ZALANDO SE ADR | Cnova NV vs. Meiwu Technology Co | Cnova NV vs. Alibaba Group Holding | Cnova NV vs. PDD Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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