Correlation Between Bodyflight Sweden and DoorDash

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

By analyzing existing cross correlation between Bodyflight Sweden AB and DoorDash Class A, you can compare the effects of market volatilities on Bodyflight Sweden and DoorDash 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 Bodyflight Sweden with a short position of DoorDash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bodyflight Sweden and DoorDash.

Diversification Opportunities for Bodyflight Sweden and DoorDash

0.09

Correlation Coefficient

Bodyflight Sweden  DoorDash

Significant diversification

The 3 months correlation between Bodyflight and DoorDash is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bodyflight Sweden AB and DoorDash Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoorDash Class A and Bodyflight Sweden 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 Bodyflight Sweden AB are associated (or correlated) with DoorDash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoorDash Class A has no effect on the direction of Bodyflight Sweden i.e., Bodyflight Sweden and DoorDash go up and down completely randomly.

Pair Corralation between Bodyflight Sweden and DoorDash

If you would invest  814.00  in Bodyflight Sweden AB on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Bodyflight Sweden AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Bodyflight Sweden AB  vs.  DoorDash Class A

Bodyflight Sweden

Risk-Adjusted Performance

0 of 100

Very Weak

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

DoorDash Class A

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DoorDash Class A are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, DoorDash demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bodyflight Sweden and DoorDash

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

The idea behind Bodyflight Sweden AB and DoorDash Class A 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.