Correlation Between Rocket Internet and GRENKELEASING Dusseldorf

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

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

Diversification Opportunities for Rocket Internet and GRENKELEASING Dusseldorf

0.1

Correlation Coefficient

Rocket Internet  GRENKELEASING Dusseldorf

Average diversification

The 3 months correlation between Rocket and GRENKELEASING is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Internet SE and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Dusseldorf and Rocket Internet 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 Rocket Internet SE are associated (or correlated) with GRENKELEASING Dusseldorf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Dusseldorf has no effect on the direction of Rocket Internet i.e., Rocket Internet and GRENKELEASING Dusseldorf go up and down completely randomly.

Pair Corralation between Rocket Internet and GRENKELEASING Dusseldorf

Assuming the 90 days trading horizon Rocket Internet is expected to generate 3.54 times less return on investment than GRENKELEASING Dusseldorf. In addition to that, Rocket Internet is 1.09 times more volatile than GRENKELEASING Dusseldorf. It trades about 0.06 of its total potential returns per unit of risk. GRENKELEASING Dusseldorf is currently generating about 0.25 per unit of volatility. If you would invest  1,319  in GRENKELEASING Dusseldorf on April 20, 2025 and sell it today you would earn a total of  447.00  from holding GRENKELEASING Dusseldorf or generate 33.89% return on investment over 90 days.

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

Rocket Internet SE  vs.  GRENKELEASING Dusseldorf

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.

GRENKELEASING Dusseldorf

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GRENKELEASING Dusseldorf are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward-looking indicators, GRENKELEASING Dusseldorf unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rocket Internet and GRENKELEASING Dusseldorf

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

The idea behind Rocket Internet SE and GRENKELEASING Dusseldorf 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.