Correlation Between BANK HANDLOWY and Rocket Internet

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

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

Diversification Opportunities for BANK HANDLOWY and Rocket Internet

-0.15

Correlation Coefficient

BANK HANDLOWY  Rocket Internet

Good diversification

The 3 months correlation between BANK and Rocket is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BANK HANDLOWY 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 BANK HANDLOWY 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 BANK HANDLOWY 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 BANK HANDLOWY i.e., BANK HANDLOWY and Rocket Internet go up and down completely randomly.

Pair Corralation between BANK HANDLOWY and Rocket Internet

Assuming the 90 days trading horizon BANK HANDLOWY is expected to generate 2.19 times less return on investment than Rocket Internet. But when comparing it to its historical volatility, BANK HANDLOWY is 2.07 times less risky than Rocket Internet. It trades about 0.07 of its potential returns per unit of risk. Rocket Internet SE is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,580  in Rocket Internet SE on April 25, 2025 and sell it today you would earn a total of  130.00  from holding Rocket Internet SE or generate 8.23% return on investment over 90 days.

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

BANK HANDLOWY  vs.  Rocket Internet SE

BANK HANDLOWY

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BANK HANDLOWY are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, BANK HANDLOWY is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Rocket Internet SE

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rocket Internet SE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Rocket Internet may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with BANK HANDLOWY and Rocket Internet

The main advantage of trading using opposite BANK HANDLOWY and Rocket Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK HANDLOWY 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.

The idea behind BANK HANDLOWY and Rocket Internet 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.