Correlation Between Inpost SA and Eurocommercial Properties
Can any of the company-specific risk be diversified away by investing in both Inpost SA and Eurocommercial Properties 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 Eurocommercial Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inpost SA and Eurocommercial Properties NV, you can compare the effects of market volatilities on Inpost SA and Eurocommercial Properties 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 Eurocommercial Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inpost SA and Eurocommercial Properties.
Diversification Opportunities for Inpost SA and Eurocommercial Properties
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inpost and Eurocommercial is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Inpost SA and Eurocommercial Properties NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurocommercial Properties 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 Eurocommercial Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurocommercial Properties has no effect on the direction of Inpost SA i.e., Inpost SA and Eurocommercial Properties go up and down completely randomly.
Pair Corralation between Inpost SA and Eurocommercial Properties
Assuming the 90 days trading horizon Inpost SA is expected to generate 1.73 times more return on investment than Eurocommercial Properties. However, Inpost SA is 1.73 times more volatile than Eurocommercial Properties NV. It trades about 0.09 of its potential returns per unit of risk. Eurocommercial Properties NV is currently generating about 0.07 per unit of risk. If you would invest 1,098 in Inpost SA on September 2, 2024 and sell it today you would earn a total of 560.00 from holding Inpost SA or generate 51.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inpost SA vs. Eurocommercial Properties NV
Performance |
| Timeline |
| Inpost SA |
| Eurocommercial Properties |
Inpost SA and Eurocommercial Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inpost SA and Eurocommercial Properties
The main advantage of trading using opposite Inpost SA and Eurocommercial Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inpost SA position performs unexpectedly, Eurocommercial Properties 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 Eurocommercial Properties will offset losses from the drop in Eurocommercial Properties' long position.| Inpost SA vs. PostNL NV | Inpost SA vs. Koninklijke Heijmans NV | Inpost SA vs. OCI NV | Inpost SA vs. Koninklijke Vopak NV |
| Eurocommercial Properties vs. Koninklijke BAM Groep | Eurocommercial Properties vs. NSI NV | Eurocommercial Properties vs. NN Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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