Correlation Between Corporate Travel and INPOST SA
Can any of the company-specific risk be diversified away by investing in both Corporate Travel and INPOST SA 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 Corporate Travel and INPOST SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and INPOST SA EO, you can compare the effects of market volatilities on Corporate Travel and INPOST SA 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 Corporate Travel with a short position of INPOST SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and INPOST SA.
Diversification Opportunities for Corporate Travel and INPOST SA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Corporate and INPOST is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and INPOST SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPOST SA EO and Corporate Travel 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 Corporate Travel Management are associated (or correlated) with INPOST SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPOST SA EO has no effect on the direction of Corporate Travel i.e., Corporate Travel and INPOST SA go up and down completely randomly.
Pair Corralation between Corporate Travel and INPOST SA
Assuming the 90 days trading horizon Corporate Travel Management is expected to generate 0.88 times more return on investment than INPOST SA. However, Corporate Travel Management is 1.14 times less risky than INPOST SA. It trades about 0.11 of its potential returns per unit of risk. INPOST SA EO is currently generating about 0.0 per unit of risk. If you would invest 775.00 in Corporate Travel Management on September 14, 2024 and sell it today you would earn a total of 30.00 from holding Corporate Travel Management or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Travel Management vs. INPOST SA EO
Performance |
| Timeline |
| Corporate Travel Man |
| INPOST SA EO |
Corporate Travel and INPOST SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Travel and INPOST SA
The main advantage of trading using opposite Corporate Travel and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel position performs unexpectedly, INPOST SA 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 INPOST SA will offset losses from the drop in INPOST SA's long position.| Corporate Travel vs. Apple Inc | Corporate Travel vs. Apple Inc | Corporate Travel vs. Apple Inc | Corporate Travel vs. Apple Inc |
| INPOST SA vs. Waste Management | INPOST SA vs. Corporate Travel Management | INPOST SA vs. Vishay Intertechnology | INPOST SA vs. SMA Solar Technology |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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