Correlation Between Just Eat and Delivery Hero

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

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

Diversification Opportunities for Just Eat and Delivery Hero

0.0

Correlation Coefficient

Just Eat  Delivery Hero

Pay attention - limited upside

The 3 months correlation between Just and Delivery is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Just Eat Takeaway 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 Just Eat 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 Just Eat Takeaway 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 Just Eat i.e., Just Eat and Delivery Hero go up and down completely randomly.

Pair Corralation between Just Eat and Delivery Hero

If you would invest (100.00) in Just Eat Takeaway on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Just Eat Takeaway or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Just Eat Takeaway  vs.  Delivery Hero SE

Just Eat Takeaway

Risk-Adjusted Performance

Very Weak

Over the last 90 days Just Eat Takeaway has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Just Eat is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Delivery Hero SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days Delivery Hero SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Just Eat and Delivery Hero

The main advantage of trading using opposite Just Eat and Delivery Hero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Just Eat 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 Just Eat Takeaway 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.