Correlation Between Bravada Intl and Delivery Hero

Can any of the company-specific risk be diversified away by investing in both Bravada Intl and Delivery Hero 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 Bravada Intl and Delivery Hero into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bravada Intl and Delivery Hero SE, you can compare the effects of market volatilities on Bravada Intl and Delivery Hero 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 Bravada Intl with a short position of Delivery Hero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bravada Intl and Delivery Hero.

Diversification Opportunities for Bravada Intl and Delivery Hero

0.0

Correlation Coefficient

Bravada Intl  Delivery Hero

Pay attention - limited upside

The 3 months correlation between Bravada and Delivery is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bravada Intl and Delivery Hero SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delivery Hero SE and Bravada Intl 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 Bravada Intl are associated (or correlated) with Delivery Hero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delivery Hero SE has no effect on the direction of Bravada Intl i.e., Bravada Intl and Delivery Hero go up and down completely randomly.

Pair Corralation between Bravada Intl and Delivery Hero

If you would invest  308.00  in Delivery Hero SE on August 31, 2024 and sell it today you would earn a total of  85.00  from holding Delivery Hero SE or generate 27.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bravada Intl  vs.  Delivery Hero SE

Bravada Intl

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bravada Intl has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Bravada Intl is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Delivery Hero SE

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Delivery Hero SE are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical indicators, Delivery Hero showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bravada Intl and Delivery Hero

The main advantage of trading using opposite Bravada Intl and Delivery Hero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bravada Intl position performs unexpectedly, Delivery Hero 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 Delivery Hero will offset losses from the drop in Delivery Hero's long position.

The idea behind Bravada Intl and Delivery Hero SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.