Correlation Between Codere Online and BuzzFeed

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

By analyzing existing cross correlation between Codere Online Luxembourg and BuzzFeed, you can compare the effects of market volatilities on Codere Online and BuzzFeed 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 BuzzFeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codere Online and BuzzFeed.

Diversification Opportunities for Codere Online and BuzzFeed

0.32

Correlation Coefficient

Codere Online  BuzzFeed

Weak diversification

The 3 months correlation between Codere and BuzzFeed is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Codere Online Luxembourg and BuzzFeed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BuzzFeed 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 Luxembourg are associated (or correlated) with BuzzFeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BuzzFeed has no effect on the direction of Codere Online i.e., Codere Online and BuzzFeed go up and down completely randomly.

Pair Corralation between Codere Online and BuzzFeed

Assuming the 90 days horizon Codere Online is expected to generate 1.11 times less return on investment than BuzzFeed. But when comparing it to its historical volatility, Codere Online Luxembourg is 1.39 times less risky than BuzzFeed. It trades about 0.1 of its potential returns per unit of risk. BuzzFeed is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  5.00  in BuzzFeed on August 5, 2025 and sell it today you would lose (0.51) from holding BuzzFeed or give up 10.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	83.41%
Values	Daily Returns

Codere Online Luxembourg  vs.  BuzzFeed

Codere Online Luxembourg

Risk-Adjusted Performance

Weakest

Over the last 90 days Codere Online Luxembourg has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

BuzzFeed

Risk-Adjusted Performance

Weakest

Over the last 90 days BuzzFeed has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in December 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Codere Online and BuzzFeed

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

The idea behind Codere Online Luxembourg and BuzzFeed 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.