Correlation Between INPOST SA and PARK24 SPONS
Can any of the company-specific risk be diversified away by investing in both INPOST SA and PARK24 SPONS 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 INPOST SA and PARK24 SPONS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INPOST SA EO and PARK24 SPONS ADR1, you can compare the effects of market volatilities on INPOST SA and PARK24 SPONS 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 INPOST SA with a short position of PARK24 SPONS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPOST SA and PARK24 SPONS.
Diversification Opportunities for INPOST SA and PARK24 SPONS
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INPOST and PARK24 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding INPOST SA EO and PARK24 SPONS ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARK24 SPONS ADR1 and INPOST SA 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 INPOST SA EO are associated (or correlated) with PARK24 SPONS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARK24 SPONS ADR1 has no effect on the direction of INPOST SA i.e., INPOST SA and PARK24 SPONS go up and down completely randomly.
Pair Corralation between INPOST SA and PARK24 SPONS
Assuming the 90 days horizon INPOST SA EO is expected to generate 0.99 times more return on investment than PARK24 SPONS. However, INPOST SA EO is 1.01 times less risky than PARK24 SPONS. It trades about 0.08 of its potential returns per unit of risk. PARK24 SPONS ADR1 is currently generating about -0.01 per unit of risk. If you would invest 796.00 in INPOST SA EO on September 23, 2024 and sell it today you would earn a total of 809.00 from holding INPOST SA EO or generate 101.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INPOST SA EO vs. PARK24 SPONS ADR1
Performance |
| Timeline |
| INPOST SA EO |
| PARK24 SPONS ADR1 |
INPOST SA and PARK24 SPONS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INPOST SA and PARK24 SPONS
The main advantage of trading using opposite INPOST SA and PARK24 SPONS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INPOST SA position performs unexpectedly, PARK24 SPONS 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 PARK24 SPONS will offset losses from the drop in PARK24 SPONS's long position.| INPOST SA vs. Cintas | INPOST SA vs. RENTOKIL INITIAL ADR5 | INPOST SA vs. Elis SA | INPOST SA vs. PARK24 LTD |
| PARK24 SPONS vs. Cintas | PARK24 SPONS vs. RENTOKIL INITIAL ADR5 | PARK24 SPONS vs. INPOST SA EO | PARK24 SPONS vs. Elis SA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stocks Directory Find actively traded stocks across global markets |