Correlation Between PostNL NV and Just Eat
Can any of the company-specific risk be diversified away by investing in both PostNL NV and Just Eat 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 PostNL NV and Just Eat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PostNL NV and Just Eat Takeaway, you can compare the effects of market volatilities on PostNL NV and Just Eat 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 PostNL NV with a short position of Just Eat. Check out your portfolio center. Please also check ongoing floating volatility patterns of PostNL NV and Just Eat.
Diversification Opportunities for PostNL NV and Just Eat
Average diversification
The 3 months correlation between PostNL and Just is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding PostNL NV and Just Eat Takeaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Just Eat Takeaway and PostNL NV 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 PostNL NV are associated (or correlated) with Just Eat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Just Eat Takeaway has no effect on the direction of PostNL NV i.e., PostNL NV and Just Eat go up and down completely randomly.
Pair Corralation between PostNL NV and Just Eat
Assuming the 90 days trading horizon PostNL NV is expected to under-perform the Just Eat. But the stock apears to be less risky and, when comparing its historical volatility, PostNL NV is 1.41 times less risky than Just Eat. The stock trades about -0.03 of its potential returns per unit of risk. The Just Eat Takeaway is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,441 in Just Eat Takeaway on November 4, 2024 and sell it today you would lose (267.00) from holding Just Eat Takeaway or give up 18.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PostNL NV vs. Just Eat Takeaway
Performance |
| Timeline |
| PostNL NV |
| Just Eat Takeaway |
PostNL NV and Just Eat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PostNL NV and Just Eat
The main advantage of trading using opposite PostNL NV and Just Eat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PostNL NV position performs unexpectedly, Just Eat 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 Just Eat will offset losses from the drop in Just Eat's long position.| PostNL NV vs. Koninklijke Ahold Delhaize | PostNL NV vs. Bpost NV | PostNL NV vs. Aegon NV | PostNL NV vs. Koninklijke KPN NV |
| Just Eat vs. Prosus NV | Just Eat vs. Koninklijke Ahold Delhaize | Just Eat vs. Adyen NV | Just Eat vs. ASML Holding 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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