Correlation Between Treasury Wine and INPOST SA

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

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

Diversification Opportunities for Treasury Wine and INPOST SA

0.0

Correlation Coefficient

Treasury Wine  INPOST SA

Pay attention - limited upside

The 3 months correlation between Treasury and INPOST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Treasury Wine Estates and INPOST SA UNSPADR12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPOST SA UNSPADR12 and Treasury Wine 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 Treasury Wine Estates 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 UNSPADR12 has no effect on the direction of Treasury Wine i.e., Treasury Wine and INPOST SA go up and down completely randomly.

Pair Corralation between Treasury Wine and INPOST SA

If you would invest  0.00  in INPOST SA UNSPADR12 on December 22, 2024 and sell it today you would earn a total of  0.00  from holding INPOST SA UNSPADR12 or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Treasury Wine Estates  vs.  INPOST SA UNSPADR12

Treasury Wine Estates

Risk-Adjusted Performance

Very Weak

Over the last 90 days Treasury Wine Estates has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain 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.

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 nearly stable basic indicators, INPOST SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Treasury Wine and INPOST SA

The main advantage of trading using opposite Treasury Wine and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Treasury Wine 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 Treasury Wine Estates and INPOST SA UNSPADR12 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.