Correlation Between Inpost SA and Warehouses
Can any of the company-specific risk be diversified away by investing in both Inpost SA and Warehouses 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 Warehouses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inpost SA and Warehouses de Pauw, you can compare the effects of market volatilities on Inpost SA and Warehouses 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 Warehouses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inpost SA and Warehouses.
Diversification Opportunities for Inpost SA and Warehouses
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inpost and Warehouses is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Inpost SA and Warehouses de Pauw in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warehouses de Pauw 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 Warehouses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warehouses de Pauw has no effect on the direction of Inpost SA i.e., Inpost SA and Warehouses go up and down completely randomly.
Pair Corralation between Inpost SA and Warehouses
Assuming the 90 days trading horizon Inpost SA is expected to generate 1.42 times more return on investment than Warehouses. However, Inpost SA is 1.42 times more volatile than Warehouses de Pauw. It trades about 0.09 of its potential returns per unit of risk. Warehouses de Pauw is currently generating about -0.06 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. Warehouses de Pauw
Performance |
| Timeline |
| Inpost SA |
| Warehouses de Pauw |
Inpost SA and Warehouses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inpost SA and Warehouses
The main advantage of trading using opposite Inpost SA and Warehouses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inpost SA position performs unexpectedly, Warehouses 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 Warehouses will offset losses from the drop in Warehouses' long position.| Inpost SA vs. PostNL NV | Inpost SA vs. Koninklijke Heijmans NV | Inpost SA vs. OCI NV | Inpost SA vs. Koninklijke Vopak NV |
| Warehouses vs. Aedifica | Warehouses vs. Cofinimmo SA | Warehouses vs. VGP NV | Warehouses vs. Sofina Socit Anonyme |
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.
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