Correlation Between Codere Online and Cenntro Electric

Can any of the company-specific risk be diversified away by investing in both Codere Online and Cenntro Electric 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 Cenntro Electric 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 Cenntro Electric Group, you can compare the effects of market volatilities on Codere Online and Cenntro Electric 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 Cenntro Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codere Online and Cenntro Electric.

Diversification Opportunities for Codere Online and Cenntro Electric

0.85

Correlation Coefficient

Codere Online  Cenntro Electric

Very poor diversification

The 3 months correlation between Codere and Cenntro is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Codere Online Luxembourg and Cenntro Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenntro Electric 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 Cenntro Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenntro Electric has no effect on the direction of Codere Online i.e., Codere Online and Cenntro Electric go up and down completely randomly.

Pair Corralation between Codere Online and Cenntro Electric

Assuming the 90 days horizon Codere Online Luxembourg is expected to generate 0.5 times more return on investment than Cenntro Electric. However, Codere Online Luxembourg is 1.99 times less risky than Cenntro Electric. It trades about -0.11 of its potential returns per unit of risk. Cenntro Electric Group is currently generating about -0.13 per unit of risk. If you would invest  103.00  in Codere Online Luxembourg on September 9, 2025 and sell it today you would lose (23.13) from holding Codere Online Luxembourg or give up 22.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	67.69%
Values	Daily Returns

Codere Online Luxembourg  vs.  Cenntro Electric Group

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 weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Cenntro Electric

Risk-Adjusted Performance

Weakest

Over the last 90 days Cenntro Electric Group 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 very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Codere Online and Cenntro Electric

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

The idea behind Codere Online Luxembourg and Cenntro Electric 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.