Correlation Between EDreams ODIGEO and Piaggio C

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

Diversification Opportunities for EDreams ODIGEO and Piaggio C

0.7

Correlation Coefficient

EDreams ODIGEO  Piaggio C

Poor diversification

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

Pair Corralation between EDreams ODIGEO and Piaggio C

Assuming the 90 days horizon eDreams ODIGEO SA is expected to under-perform the Piaggio C. In addition to that, EDreams ODIGEO is 2.68 times more volatile than Piaggio C SpA. It trades about -0.18 of its total potential returns per unit of risk. Piaggio C SpA is currently generating about -0.06 per unit of volatility. If you would invest  230.00  in Piaggio C SpA on August 28, 2025 and sell it today you would lose (22.00) from holding Piaggio C SpA or give up 9.57% of portfolio value over 90 days.

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

eDreams ODIGEO SA  vs.  Piaggio C SpA

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 weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Piaggio C SpA

Risk-Adjusted Performance

Weakest

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

Pair Trading with EDreams ODIGEO and Piaggio C

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

The idea behind eDreams ODIGEO SA and Piaggio C SpA 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.