Correlation Between Eurocommercial Properties and Inpost SA
Can any of the company-specific risk be diversified away by investing in both Eurocommercial Properties 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 Eurocommercial Properties and Inpost SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurocommercial Properties NV and Inpost SA, you can compare the effects of market volatilities on Eurocommercial Properties 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 Eurocommercial Properties with a short position of Inpost SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurocommercial Properties and Inpost SA.
Diversification Opportunities for Eurocommercial Properties and Inpost SA
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eurocommercial and Inpost is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Eurocommercial Properties NV and Inpost SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpost SA and Eurocommercial Properties 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 Eurocommercial Properties NV 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 Eurocommercial Properties i.e., Eurocommercial Properties and Inpost SA go up and down completely randomly.
Pair Corralation between Eurocommercial Properties and Inpost SA
Assuming the 90 days trading horizon Eurocommercial Properties NV is expected to generate 0.57 times more return on investment than Inpost SA. However, Eurocommercial Properties NV is 1.77 times less risky than Inpost SA. It trades about 0.34 of its potential returns per unit of risk. Inpost SA is currently generating about 0.19 per unit of risk. If you would invest 2,300 in Eurocommercial Properties NV on November 29, 2024 and sell it today you would earn a total of 140.00 from holding Eurocommercial Properties NV or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurocommercial Properties NV vs. Inpost SA
Performance |
| Timeline |
| Eurocommercial Properties |
| Inpost SA |
Eurocommercial Properties and Inpost SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurocommercial Properties and Inpost SA
The main advantage of trading using opposite Eurocommercial Properties and Inpost SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurocommercial Properties 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.| Eurocommercial Properties vs. Wereldhave NV | Eurocommercial Properties vs. NSI NV | Eurocommercial Properties vs. Klepierre SA | Eurocommercial Properties vs. Koninklijke BAM Groep |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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