Correlation Between Cnova NV and Digital Brands

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

By analyzing existing cross correlation between Cnova NV and Digital Brands Group,, you can compare the effects of market volatilities on Cnova NV and Digital Brands 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 Cnova NV with a short position of Digital Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cnova NV and Digital Brands.

Diversification Opportunities for Cnova NV and Digital Brands

0.0

Correlation Coefficient

Cnova NV  Digital Brands

Pay attention - limited upside

The 3 months correlation between Cnova and Digital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cnova NV and Digital Brands Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Brands Group, and Cnova NV 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 Cnova NV are associated (or correlated) with Digital Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Brands Group, has no effect on the direction of Cnova NV i.e., Cnova NV and Digital Brands go up and down completely randomly.

Pair Corralation between Cnova NV and Digital Brands

If you would invest  11.00  in Cnova NV on August 26, 2025 and sell it today you would earn a total of  0.00  from holding Cnova NV or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Cnova NV  vs.  Digital Brands Group,

Cnova NV

Risk-Adjusted Performance

Weakest

Over the last 90 days Cnova NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Cnova NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Digital Brands Group,

Risk-Adjusted Performance

Weakest

Over the last 90 days Digital Brands Group, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Digital Brands is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Cnova NV and Digital Brands

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

The idea behind Cnova NV and Digital Brands Group, 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.