Correlation Between INPOST SA and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both INPOST SA and GameStop Corp 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 GameStop Corp 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 GameStop Corp, you can compare the effects of market volatilities on INPOST SA and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPOST SA and GameStop Corp.
Diversification Opportunities for INPOST SA and GameStop Corp
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between INPOST and GameStop is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding INPOST SA EO and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop Corp 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of INPOST SA i.e., INPOST SA and GameStop Corp go up and down completely randomly.
Pair Corralation between INPOST SA and GameStop Corp
Assuming the 90 days horizon INPOST SA is expected to generate 5.84 times less return on investment than GameStop Corp. But when comparing it to its historical volatility, INPOST SA EO is 2.49 times less risky than GameStop Corp. It trades about 0.08 of its potential returns per unit of risk. GameStop Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,091 in GameStop Corp on August 30, 2024 and sell it today you would earn a total of 667.00 from holding GameStop Corp or generate 31.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INPOST SA EO vs. GameStop Corp
Performance |
| Timeline |
| INPOST SA EO |
| GameStop Corp |
INPOST SA and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INPOST SA and GameStop Corp
The main advantage of trading using opposite INPOST SA and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INPOST SA position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp'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 |
| GameStop Corp vs. Superior Plus Corp | GameStop Corp vs. NMI Holdings | GameStop Corp vs. SIVERS SEMICONDUCTORS AB | GameStop Corp 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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