Correlation Between ZALANDO SE and Reebonz Holding
Can any of the company-specific risk be diversified away by investing in both ZALANDO SE 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 ZALANDO SE and Reebonz Holding 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 Reebonz Holding, you can compare the effects of market volatilities on ZALANDO SE 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 ZALANDO SE with a short position of Reebonz Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZALANDO SE and Reebonz Holding.
Diversification Opportunities for ZALANDO SE and Reebonz Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZALANDO and Reebonz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ZALANDO SE ADR and Reebonz Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reebonz Holding 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 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 ZALANDO SE i.e., ZALANDO SE and Reebonz Holding go up and down completely randomly.
Pair Corralation between ZALANDO SE 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 |
ZALANDO SE ADR vs. Reebonz Holding
Performance |
| Timeline |
| ZALANDO SE ADR |
| Reebonz Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ZALANDO SE and Reebonz Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZALANDO SE and Reebonz Holding
The main advantage of trading using opposite ZALANDO SE and Reebonz Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZALANDO SE 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.| ZALANDO SE vs. ASOS Plc | ZALANDO SE vs. BoohooCom PLC ADR | ZALANDO SE vs. Allegroeu SA | ZALANDO SE vs. AKA Brands Holding |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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