Correlation Between Workiva and Rocket Internet
Can any of the company-specific risk be diversified away by investing in both Workiva and Rocket Internet 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 Workiva and Rocket Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workiva and Rocket Internet SE, you can compare the effects of market volatilities on Workiva and Rocket Internet 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 Workiva with a short position of Rocket Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workiva and Rocket Internet.
Diversification Opportunities for Workiva and Rocket Internet
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Workiva and Rocket is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and Rocket Internet SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rocket Internet SE and Workiva 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 Workiva are associated (or correlated) with Rocket Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rocket Internet SE has no effect on the direction of Workiva i.e., Workiva and Rocket Internet go up and down completely randomly.
Pair Corralation between Workiva and Rocket Internet
Assuming the 90 days trading horizon Workiva is expected to generate 5.5 times less return on investment than Rocket Internet. In addition to that, Workiva is 1.06 times more volatile than Rocket Internet SE. It trades about 0.01 of its total potential returns per unit of risk. Rocket Internet SE is currently generating about 0.06 per unit of volatility. If you would invest 1,600 in Rocket Internet SE on April 20, 2025 and sell it today you would earn a total of 120.00 from holding Rocket Internet SE or generate 7.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Workiva vs. Rocket Internet SE
Performance |
Timeline |
Workiva |
Rocket Internet SE |
Workiva and Rocket Internet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Workiva and Rocket Internet
The main advantage of trading using opposite Workiva and Rocket Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workiva position performs unexpectedly, Rocket Internet 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 Rocket Internet will offset losses from the drop in Rocket Internet's long position.Workiva vs. Ming Le Sports | Workiva vs. Transport International Holdings | Workiva vs. SAN MIGUEL BREWERY | Workiva vs. Transportadora de Gas |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |