Correlation Between INPOST SA and INPOST SA

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

By analyzing existing cross correlation between INPOST SA UNSPADR12 and INPOST SA EO, you can compare the effects of market volatilities on INPOST SA 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 INPOST SA with a short position of INPOST SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPOST SA and INPOST SA.

Diversification Opportunities for INPOST SA and INPOST SA

0.59

Correlation Coefficient

INPOST SA  INPOST SA

Very weak diversification

The 3 months correlation between INPOST and INPOST is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding INPOST SA UNSPADR12 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 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 UNSPADR12 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 INPOST SA i.e., INPOST SA and INPOST SA go up and down completely randomly.

Pair Corralation between INPOST SA and INPOST SA

Assuming the 90 days trading horizon INPOST SA UNSPADR12 is expected to generate 1.27 times more return on investment than INPOST SA. However, INPOST SA is 1.27 times more volatile than INPOST SA EO. It trades about -0.06 of its potential returns per unit of risk. INPOST SA EO is currently generating about -0.11 per unit of risk. If you would invest  775.00  in INPOST SA UNSPADR12 on December 22, 2024 and sell it today you would lose (85.00) from holding INPOST SA UNSPADR12 or give up 10.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

INPOST SA UNSPADR12  vs.  INPOST SA EO

INPOST SA UNSPADR12

Risk-Adjusted Performance

Very Weak

Over the last 90 days INPOST SA UNSPADR12 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

INPOST SA EO

Risk-Adjusted Performance

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 unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with INPOST SA and INPOST SA

The main advantage of trading using opposite INPOST SA and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INPOST SA 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 INPOST SA UNSPADR12 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.