Correlation Between EDreams ODIGEO and DominoS Pizza

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

By analyzing existing cross correlation between eDreams ODIGEO SA and DominoS Pizza Enterprises, you can compare the effects of market volatilities on EDreams ODIGEO and DominoS Pizza 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 EDreams ODIGEO with a short position of DominoS Pizza. Check out your portfolio center. Please also check ongoing floating volatility patterns of EDreams ODIGEO and DominoS Pizza.

Diversification Opportunities for EDreams ODIGEO and DominoS Pizza

-0.36

Correlation Coefficient

EDreams ODIGEO  DominoS Pizza

Very good diversification

The 3 months correlation between EDreams and DominoS is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding eDreams ODIGEO SA and DominoS Pizza Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DominoS Pizza Enterprises and EDreams ODIGEO 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 eDreams ODIGEO SA are associated (or correlated) with DominoS Pizza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DominoS Pizza Enterprises has no effect on the direction of EDreams ODIGEO i.e., EDreams ODIGEO and DominoS Pizza go up and down completely randomly.

Pair Corralation between EDreams ODIGEO and DominoS Pizza

Assuming the 90 days horizon eDreams ODIGEO SA is expected to under-perform the DominoS Pizza. But the otc stock apears to be less risky and, when comparing its historical volatility, eDreams ODIGEO SA is 3.03 times less risky than DominoS Pizza. The otc stock trades about -0.08 of its potential returns per unit of risk. The DominoS Pizza Enterprises is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  579.00  in DominoS Pizza Enterprises on August 19, 2025 and sell it today you would earn a total of  29.00  from holding DominoS Pizza Enterprises or generate 5.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

eDreams ODIGEO SA  vs.  DominoS Pizza Enterprises

eDreams ODIGEO SA

Risk-Adjusted Performance

Weakest

Over the last 90 days eDreams ODIGEO SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

DominoS Pizza Enterprises

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in DominoS Pizza Enterprises are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, DominoS Pizza showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EDreams ODIGEO and DominoS Pizza

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

The idea behind eDreams ODIGEO SA and DominoS Pizza Enterprises 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.

Check out your portfolio center.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.