Correlation Between AMS Small and Inpost SA
Can any of the company-specific risk be diversified away by investing in both AMS Small 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 AMS Small and Inpost SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMS Small Cap and Inpost SA, you can compare the effects of market volatilities on AMS Small 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 AMS Small with a short position of Inpost SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMS Small and Inpost SA.
Diversification Opportunities for AMS Small and Inpost SA
Very good diversification
The 3 months correlation between AMS and Inpost is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AMS Small Cap and Inpost SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpost SA and AMS Small 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 AMS Small Cap 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 has no effect on the direction of AMS Small i.e., AMS Small and Inpost SA go up and down completely randomly.
Pair Corralation between AMS Small and Inpost SA
Assuming the 90 days trading horizon AMS Small is expected to generate 1.3 times less return on investment than Inpost SA. But when comparing it to its historical volatility, AMS Small Cap is 1.46 times less risky than Inpost SA. It trades about 0.25 of its potential returns per unit of risk. Inpost SA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,609 in Inpost SA on November 22, 2024 and sell it today you would earn a total of 111.00 from holding Inpost SA or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMS Small Cap vs. Inpost SA
Performance |
| Timeline |
AMS Small and Inpost SA Volatility Contrast
Predicted Return Density |
| Returns |
AMS Small Cap
Pair trading matchups for AMS Small
Inpost SA
Pair trading matchups for Inpost SA
Pair Trading with AMS Small and Inpost SA
The main advantage of trading using opposite AMS Small and Inpost SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMS Small 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.| AMS Small vs. SBM Offshore NV | AMS Small vs. BE Semiconductor Industries | AMS Small vs. AMG Advanced Metallurgical |
| Inpost SA vs. PostNL NV | Inpost SA vs. Koninklijke Heijmans NV | Inpost SA vs. OCI NV | Inpost SA vs. Koninklijke Vopak NV |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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