Correlation Between INPOST SA and Elis SA
Can any of the company-specific risk be diversified away by investing in both INPOST SA and Elis 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 INPOST SA and Elis SA 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 Elis SA, you can compare the effects of market volatilities on INPOST SA and Elis 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 INPOST SA with a short position of Elis SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPOST SA and Elis SA.
Diversification Opportunities for INPOST SA and Elis SA
Good diversification
The 3 months correlation between INPOST and Elis is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding INPOST SA EO and Elis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elis SA 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 Elis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elis SA has no effect on the direction of INPOST SA i.e., INPOST SA and Elis SA go up and down completely randomly.
Pair Corralation between INPOST SA and Elis SA
Assuming the 90 days horizon INPOST SA EO is expected to generate 0.94 times more return on investment than Elis SA. However, INPOST SA EO is 1.07 times less risky than Elis SA. It trades about 0.03 of its potential returns per unit of risk. Elis SA is currently generating about -0.06 per unit of risk. If you would invest 1,674 in INPOST SA EO on August 29, 2024 and sell it today you would earn a total of 88.00 from holding INPOST SA EO or generate 5.26% 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. Elis SA
Performance |
| Timeline |
| INPOST SA EO |
| Elis SA |
INPOST SA and Elis SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INPOST SA and Elis SA
The main advantage of trading using opposite INPOST SA and Elis SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INPOST SA position performs unexpectedly, Elis 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 Elis SA will offset losses from the drop in Elis SA's long position.| INPOST SA vs. Consolidated Communications Holdings | INPOST SA vs. Ribbon Communications | INPOST SA vs. Thai Beverage Public | INPOST SA vs. COMBA TELECOM SYST |
| Elis SA vs. Cintas | Elis SA vs. Superior Plus Corp | Elis SA vs. SIVERS SEMICONDUCTORS AB | Elis SA vs. Talanx AG |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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