Correlation Between Sporttotal and INPOST SA
Can any of the company-specific risk be diversified away by investing in both Sporttotal 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 Sporttotal and INPOST SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sporttotal AG and INPOST SA EO, you can compare the effects of market volatilities on Sporttotal 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 Sporttotal with a short position of INPOST SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sporttotal and INPOST SA.
Diversification Opportunities for Sporttotal and INPOST SA
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sporttotal and INPOST is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sporttotal AG 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 Sporttotal 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 Sporttotal AG 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 Sporttotal i.e., Sporttotal and INPOST SA go up and down completely randomly.
Pair Corralation between Sporttotal and INPOST SA
Assuming the 90 days trading horizon Sporttotal AG is expected to under-perform the INPOST SA. In addition to that, Sporttotal is 2.94 times more volatile than INPOST SA EO. It trades about -0.22 of its total potential returns per unit of risk. INPOST SA EO is currently generating about -0.15 per unit of volatility. If you would invest 1,823 in INPOST SA EO on August 26, 2024 and sell it today you would lose (90.00) from holding INPOST SA EO or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sporttotal AG vs. INPOST SA EO
Performance |
| Timeline |
| Sporttotal AG |
| INPOST SA EO |
Sporttotal and INPOST SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sporttotal and INPOST SA
The main advantage of trading using opposite Sporttotal and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sporttotal 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.The idea behind Sporttotal AG and INPOST SA EO pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| INPOST SA vs. GameStop Corp | INPOST SA vs. GAMING FAC SA | INPOST SA vs. Media and Games | INPOST SA vs. Sporttotal AG |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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