Correlation Between Bloise Holding and Dingdong ADR

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

By analyzing existing cross correlation between Bloise Holding AG and Dingdong ADR, you can compare the effects of market volatilities on Bloise Holding and Dingdong ADR 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 Bloise Holding with a short position of Dingdong ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloise Holding and Dingdong ADR.

Diversification Opportunities for Bloise Holding and Dingdong ADR

-0.01

Correlation Coefficient

Bloise Holding  Dingdong ADR

Good diversification

The 3 months correlation between Bloise and Dingdong is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bloise Holding AG and Dingdong ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dingdong ADR and Bloise Holding 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 Bloise Holding AG are associated (or correlated) with Dingdong ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dingdong ADR has no effect on the direction of Bloise Holding i.e., Bloise Holding and Dingdong ADR go up and down completely randomly.

Pair Corralation between Bloise Holding and Dingdong ADR

Assuming the 90 days horizon Bloise Holding AG is expected to generate 2.2 times more return on investment than Dingdong ADR. However, Bloise Holding is 2.2 times more volatile than Dingdong ADR. It trades about 0.05 of its potential returns per unit of risk. Dingdong ADR is currently generating about -0.04 per unit of risk. If you would invest  21,988  in Bloise Holding AG on April 24, 2025 and sell it today you would earn a total of  1,412  from holding Bloise Holding AG or generate 6.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Bloise Holding AG  vs.  Dingdong ADR

Bloise Holding AG

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bloise Holding AG are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Bloise Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Dingdong ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dingdong ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Bloise Holding and Dingdong ADR

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

The idea behind Bloise Holding AG and Dingdong ADR 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.