Correlation Between GameStop Corp and INPOST SA
Can any of the company-specific risk be diversified away by investing in both GameStop Corp 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 GameStop Corp and INPOST SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and INPOST SA EO, you can compare the effects of market volatilities on GameStop Corp 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 GameStop Corp with a short position of INPOST SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and INPOST SA.
Diversification Opportunities for GameStop Corp and INPOST SA
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GameStop and INPOST is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and INPOST SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPOST SA EO and GameStop Corp 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 GameStop Corp 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 EO has no effect on the direction of GameStop Corp i.e., GameStop Corp and INPOST SA go up and down completely randomly.
Pair Corralation between GameStop Corp and INPOST SA
Assuming the 90 days trading horizon GameStop Corp is expected to generate 2.57 times more return on investment than INPOST SA. However, GameStop Corp is 2.57 times more volatile than INPOST SA EO. It trades about 0.33 of its potential returns per unit of risk. INPOST SA EO is currently generating about -0.08 per unit of risk. If you would invest 2,097 in GameStop Corp on August 30, 2024 and sell it today you would earn a total of 661.00 from holding GameStop Corp or generate 31.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. INPOST SA EO
Performance |
| Timeline |
| GameStop Corp |
| INPOST SA EO |
GameStop Corp and INPOST SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and INPOST SA
The main advantage of trading using opposite GameStop Corp and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp 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.| GameStop Corp vs. Superior Plus Corp | GameStop Corp vs. NMI Holdings | GameStop Corp vs. SIVERS SEMICONDUCTORS AB | GameStop Corp vs. Talanx AG |
| INPOST SA vs. Consolidated Communications Holdings | INPOST SA vs. Ribbon Communications | INPOST SA vs. Thai Beverage Public | INPOST SA vs. COMBA TELECOM SYST |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |