Correlation Between Forward Industries and Codere Online
Can any of the company-specific risk be diversified away by investing in both Forward Industries 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 Forward Industries and Codere Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forward Industries and Codere Online Luxembourg, you can compare the effects of market volatilities on Forward Industries 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 Forward Industries with a short position of Codere Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forward Industries and Codere Online.
Diversification Opportunities for Forward Industries and Codere Online
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Forward and Codere is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Forward Industries 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 Forward Industries 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 Forward Industries 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 Forward Industries i.e., Forward Industries and Codere Online go up and down completely randomly.
Pair Corralation between Forward Industries and Codere Online
Given the investment horizon of 90 days Forward Industries is expected to generate 3.26 times more return on investment than Codere Online. However, Forward Industries is 3.26 times more volatile than Codere Online Luxembourg. It trades about 0.02 of its potential returns per unit of risk. Codere Online Luxembourg is currently generating about -0.2 per unit of risk. If you would invest 1,335 in Forward Industries on August 10, 2025 and sell it today you would lose (298.00) from holding Forward Industries or give up 22.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 60.94% |
| Values | Daily Returns |
Forward Industries vs. Codere Online Luxembourg
Performance |
| Timeline |
| Forward Industries |
| Codere Online Luxembourg |
Forward Industries and Codere Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forward Industries and Codere Online
The main advantage of trading using opposite Forward Industries and Codere Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forward Industries 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.| Forward Industries vs. MaxsMaking Class A | Forward Industries vs. Leslies | Forward Industries vs. Westport Fuel Systems | Forward Industries vs. CarPartsCom |
| Codere Online vs. Sonder Holdings | Codere Online vs. Westport Fuel Systems | Codere Online vs. CarPartsCom | Codere Online vs. Forward Industries |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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