Correlation Between INPOST SA and Cintas

Can any of the company-specific risk be diversified away by investing in both INPOST SA and Cintas 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 Cintas 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 Cintas, you can compare the effects of market volatilities on INPOST SA and Cintas 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 Cintas. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPOST SA and Cintas.

Diversification Opportunities for INPOST SA and Cintas

-0.08

Correlation Coefficient

INPOST SA  Cintas

Good diversification

The 3 months correlation between INPOST and Cintas is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding INPOST SA EO and Cintas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cintas 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 Cintas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cintas has no effect on the direction of INPOST SA i.e., INPOST SA and Cintas go up and down completely randomly.

Pair Corralation between INPOST SA and Cintas

Assuming the 90 days horizon INPOST SA EO is expected to generate 0.55 times more return on investment than Cintas. However, INPOST SA EO is 1.82 times less risky than Cintas. It trades about -0.18 of its potential returns per unit of risk. Cintas is currently generating about -0.26 per unit of risk. If you would invest  1,733  in INPOST SA EO on September 23, 2024 and sell it today you would lose (111.00) from holding INPOST SA EO or give up 6.41% of portfolio value over 90 days.

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

INPOST SA EO  vs.  Cintas

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cintas

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with INPOST SA and Cintas

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

The idea behind INPOST SA EO and Cintas 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.