Correlation Between CODERE ONLINE and AECOM

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

By analyzing existing cross correlation between CODERE ONLINE LUX and AECOM, you can compare the effects of market volatilities on CODERE ONLINE and AECOM 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 CODERE ONLINE with a short position of AECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of CODERE ONLINE and AECOM.

Diversification Opportunities for CODERE ONLINE and AECOM

0.36

Correlation Coefficient

CODERE ONLINE  AECOM

Weak diversification

The 3 months correlation between CODERE and AECOM is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CODERE ONLINE LUX and AECOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECOM and CODERE ONLINE 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 CODERE ONLINE LUX are associated (or correlated) with AECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECOM has no effect on the direction of CODERE ONLINE i.e., CODERE ONLINE and AECOM go up and down completely randomly.

Pair Corralation between CODERE ONLINE and AECOM

Assuming the 90 days horizon CODERE ONLINE LUX is expected to generate 1.91 times more return on investment than AECOM. However, CODERE ONLINE is 1.91 times more volatile than AECOM. It trades about 0.12 of its potential returns per unit of risk. AECOM is currently generating about 0.14 per unit of risk. If you would invest  610.00  in CODERE ONLINE LUX on April 25, 2025 and sell it today you would earn a total of  110.00  from holding CODERE ONLINE LUX or generate 18.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CODERE ONLINE LUX  vs.  AECOM

CODERE ONLINE LUX

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CODERE ONLINE LUX are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CODERE ONLINE reported solid returns over the last few months and may actually be approaching a breakup point.

AECOM

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AECOM are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, AECOM may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CODERE ONLINE and AECOM

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

The idea behind CODERE ONLINE LUX and AECOM 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.