Correlation Between Poste Italiane and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Poste Italiane and Schibsted ASA 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 Poste Italiane and Schibsted ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Poste Italiane SpA and Schibsted ASA A, you can compare the effects of market volatilities on Poste Italiane and Schibsted ASA 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 Poste Italiane with a short position of Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poste Italiane and Schibsted ASA.
Diversification Opportunities for Poste Italiane and Schibsted ASA
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Poste and Schibsted is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Poste Italiane SpA and Schibsted ASA A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA A and Poste Italiane 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 Poste Italiane SpA are associated (or correlated) with Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA A has no effect on the direction of Poste Italiane i.e., Poste Italiane and Schibsted ASA go up and down completely randomly.
Pair Corralation between Poste Italiane and Schibsted ASA
Assuming the 90 days horizon Poste Italiane is expected to generate 2.6 times less return on investment than Schibsted ASA. But when comparing it to its historical volatility, Poste Italiane SpA is 2.7 times less risky than Schibsted ASA. It trades about 0.09 of its potential returns per unit of risk. Schibsted ASA A is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,018 in Schibsted ASA A on September 3, 2024 and sell it today you would earn a total of 2,136 from holding Schibsted ASA A or generate 209.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poste Italiane SpA vs. Schibsted ASA A
Performance |
| Timeline |
| Poste Italiane SpA |
| Schibsted ASA A |
Poste Italiane and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poste Italiane and Schibsted ASA
The main advantage of trading using opposite Poste Italiane and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poste Italiane position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Poste Italiane vs. Genco Shipping Trading | Poste Italiane vs. NORWEGIAN AIR SHUT | Poste Italiane vs. Japan Tobacco | Poste Italiane vs. Wizz Air Holdings |
| Schibsted ASA vs. Superior Plus Corp | Schibsted ASA vs. NMI Holdings | Schibsted ASA vs. Origin Agritech | Schibsted ASA vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |