Correlation Between Cenntro Electric and Codere Online

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

By analyzing existing cross correlation between Cenntro Electric Group and Codere Online Corp, you can compare the effects of market volatilities on Cenntro Electric and Codere Online 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 Cenntro Electric with a short position of Codere Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cenntro Electric and Codere Online.

Diversification Opportunities for Cenntro Electric and Codere Online

0.54

Correlation Coefficient

Cenntro Electric  Codere Online

Very weak diversification

The 3 months correlation between Cenntro and Codere is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cenntro Electric Group and Codere Online Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codere Online Corp and Cenntro Electric 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 Cenntro Electric Group are associated (or correlated) with Codere Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codere Online Corp has no effect on the direction of Cenntro Electric i.e., Cenntro Electric and Codere Online go up and down completely randomly.

Pair Corralation between Cenntro Electric and Codere Online

Given the investment horizon of 90 days Cenntro Electric Group is expected to under-perform the Codere Online. In addition to that, Cenntro Electric is 3.87 times more volatile than Codere Online Corp. It trades about -0.11 of its total potential returns per unit of risk. Codere Online Corp is currently generating about -0.22 per unit of volatility. If you would invest  840.00  in Codere Online Corp on July 31, 2025 and sell it today you would lose (221.00) from holding Codere Online Corp or give up 26.31% of portfolio value over 90 days.

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

Cenntro Electric Group  vs.  Codere Online Corp

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 November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Codere Online Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Codere Online Corp 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 very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Cenntro Electric and Codere Online

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

The idea behind Cenntro Electric Group and Codere Online Corp 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.