Correlation Between Codere Online and Worksport

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

Diversification Opportunities for Codere Online and Worksport

0.7

Correlation Coefficient

Codere Online  Worksport

Poor diversification

The 3 months correlation between Codere and Worksport is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Codere Online Luxembourg and Worksport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worksport 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 Worksport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worksport has no effect on the direction of Codere Online i.e., Codere Online and Worksport go up and down completely randomly.

Pair Corralation between Codere Online and Worksport

Assuming the 90 days horizon Codere Online Luxembourg is expected to generate 0.96 times more return on investment than Worksport. However, Codere Online Luxembourg is 1.05 times less risky than Worksport. It trades about 0.18 of its potential returns per unit of risk. Worksport is currently generating about 0.05 per unit of risk. If you would invest  70.00  in Codere Online Luxembourg on April 30, 2025 and sell it today you would earn a total of  34.00  from holding Codere Online Luxembourg or generate 48.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	72.13%
Values	Daily Returns

Codere Online Luxembourg  vs.  Worksport

Codere Online Luxembourg

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Codere Online Luxembourg are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Codere Online showed solid returns over the last few months and may actually be approaching a breakup point.

Worksport

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Worksport are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Worksport reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Codere Online and Worksport

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

The idea behind Codere Online Luxembourg and Worksport 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.