Correlation Between ZALANDO SE and Phonex
Can any of the company-specific risk be diversified away by investing in both ZALANDO SE and Phonex 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 Phonex 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 Phonex Inc, you can compare the effects of market volatilities on ZALANDO SE and Phonex 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 Phonex. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZALANDO SE and Phonex.
Diversification Opportunities for ZALANDO SE and Phonex
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZALANDO and Phonex is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ZALANDO SE ADR and Phonex Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phonex Inc 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 Phonex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phonex Inc has no effect on the direction of ZALANDO SE i.e., ZALANDO SE and Phonex go up and down completely randomly.
Pair Corralation between ZALANDO SE and Phonex
Assuming the 90 days horizon ZALANDO SE is expected to generate 1.55 times less return on investment than Phonex. But when comparing it to its historical volatility, ZALANDO SE ADR is 1.44 times less risky than Phonex. It trades about 0.11 of its potential returns per unit of risk. Phonex Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Phonex Inc on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Phonex Inc or generate 15.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZALANDO SE ADR vs. Phonex Inc
Performance |
| Timeline |
| ZALANDO SE ADR |
| Phonex Inc |
ZALANDO SE and Phonex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZALANDO SE and Phonex
The main advantage of trading using opposite ZALANDO SE and Phonex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZALANDO SE position performs unexpectedly, Phonex 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 Phonex will offset losses from the drop in Phonex'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 |
| Phonex vs. Delivery Hero SE | Phonex vs. 1StdibsCom | Phonex vs. Natural Health Trend | Phonex vs. Emerge Commerce |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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