Correlation Between Light Wonder and Codere Online

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

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

Diversification Opportunities for Light Wonder and Codere Online

-0.75

Correlation Coefficient

Light Wonder  Codere Online

Pay attention - limited upside

The 3 months correlation between Light and Codere is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Light Wonder and Codere Online Luxembourg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codere Online Luxembourg and Light Wonder 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 Light Wonder 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 Luxembourg has no effect on the direction of Light Wonder i.e., Light Wonder and Codere Online go up and down completely randomly.

Pair Corralation between Light Wonder and Codere Online

Considering the 90-day investment horizon Light Wonder is expected to under-perform the Codere Online. But the stock apears to be less risky and, when comparing its historical volatility, Light Wonder is 2.24 times less risky than Codere Online. The stock trades about -0.01 of its potential returns per unit of risk. The Codere Online Luxembourg is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  87.00  in Codere Online Luxembourg on July 1, 2025 and sell it today you would lose (11.00) from holding Codere Online Luxembourg or give up 12.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	77.7%
Values	Daily Returns

Light Wonder  vs.  Codere Online Luxembourg

Light Wonder

Risk-Adjusted Performance

Weakest

Over the last 90 days Light Wonder has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating 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.

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 abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in October 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Light Wonder and Codere Online

The main advantage of trading using opposite Light Wonder and Codere Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Light Wonder 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 Light Wonder and Codere Online Luxembourg 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.