Correlation Between Inpost SA and AFC Ajax
Can any of the company-specific risk be diversified away by investing in both Inpost SA and AFC Ajax 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 AFC Ajax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inpost SA and AFC Ajax NV, you can compare the effects of market volatilities on Inpost SA and AFC Ajax 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 AFC Ajax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inpost SA and AFC Ajax.
Diversification Opportunities for Inpost SA and AFC Ajax
Weak diversification
The 3 months correlation between Inpost and AFC is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Inpost SA and AFC Ajax NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFC Ajax NV 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 are associated (or correlated) with AFC Ajax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFC Ajax NV has no effect on the direction of Inpost SA i.e., Inpost SA and AFC Ajax go up and down completely randomly.
Pair Corralation between Inpost SA and AFC Ajax
Assuming the 90 days trading horizon Inpost SA is expected to generate 1.08 times less return on investment than AFC Ajax. In addition to that, Inpost SA is 2.26 times more volatile than AFC Ajax NV. It trades about 0.04 of its total potential returns per unit of risk. AFC Ajax NV is currently generating about 0.09 per unit of volatility. If you would invest 982.00 in AFC Ajax NV on November 30, 2024 and sell it today you would earn a total of 28.00 from holding AFC Ajax NV or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inpost SA vs. AFC Ajax NV
Performance |
| Timeline |
| Inpost SA |
| AFC Ajax NV |
Inpost SA and AFC Ajax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inpost SA and AFC Ajax
The main advantage of trading using opposite Inpost SA and AFC Ajax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inpost SA position performs unexpectedly, AFC Ajax 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 AFC Ajax will offset losses from the drop in AFC Ajax's long position.| Inpost SA vs. PostNL NV | Inpost SA vs. Koninklijke Heijmans NV | Inpost SA vs. OCI NV | Inpost SA vs. Koninklijke Vopak NV |
| AFC Ajax vs. Reinet Investments SCA | AFC Ajax vs. AMG Advanced Metallurgical | AFC Ajax vs. Accsys Technologies | AFC Ajax vs. BE Semiconductor Industries |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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