Correlation Between Codere Online and Carriage Services

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

Diversification Opportunities for Codere Online and Carriage Services

0.74

Correlation Coefficient

Codere Online  Carriage Services

Poor diversification

The 3 months correlation between Codere and Carriage is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Codere Online Luxembourg and Carriage Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carriage Services 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 Carriage Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carriage Services has no effect on the direction of Codere Online i.e., Codere Online and Carriage Services go up and down completely randomly.

Pair Corralation between Codere Online and Carriage Services

Assuming the 90 days horizon Codere Online Luxembourg is expected to generate 3.29 times more return on investment than Carriage Services. However, Codere Online is 3.29 times more volatile than Carriage Services. It trades about 0.0 of its potential returns per unit of risk. Carriage Services is currently generating about -0.08 per unit of risk. If you would invest  88.00  in Codere Online Luxembourg on October 9, 2025 and sell it today you would lose (4.00) from holding Codere Online Luxembourg or give up 4.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	83.61%
Values	Daily Returns

Codere Online Luxembourg  vs.  Carriage Services

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 fairly stable basic indicators, Codere Online is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Carriage Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Carriage Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Codere Online and Carriage Services

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

The idea behind Codere Online Luxembourg and Carriage Services 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.