Correlation Between INPOST SA and CSSC Offshore

Can any of the company-specific risk be diversified away by investing in both INPOST SA and CSSC Offshore 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 CSSC Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INPOST SA EO and CSSC Offshore Marine, you can compare the effects of market volatilities on INPOST SA and CSSC Offshore 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 CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPOST SA and CSSC Offshore.

Diversification Opportunities for INPOST SA and CSSC Offshore

0.39

Correlation Coefficient

INPOST SA  CSSC Offshore

Weak diversification

The 3 months correlation between INPOST and CSSC is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding INPOST SA EO and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 EO are associated (or correlated) with CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of INPOST SA i.e., INPOST SA and CSSC Offshore go up and down completely randomly.

Pair Corralation between INPOST SA and CSSC Offshore

Assuming the 90 days horizon INPOST SA EO is expected to generate 0.51 times more return on investment than CSSC Offshore. However, INPOST SA EO is 1.96 times less risky than CSSC Offshore. It trades about 0.18 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.01 per unit of risk. If you would invest  1,648  in INPOST SA EO on October 9, 2024 and sell it today you would earn a total of  62.00  from holding INPOST SA EO or generate 3.76% 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 EO  vs.  CSSC Offshore Marine

INPOST SA EO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INPOST SA EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, INPOST SA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

CSSC Offshore Marine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CSSC Offshore Marine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with INPOST SA and CSSC Offshore

The main advantage of trading using opposite INPOST SA and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INPOST SA position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.

The idea behind INPOST SA EO and CSSC Offshore Marine 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.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.