Correlation Between BenevolentAI and PostNL NV

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

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

Diversification Opportunities for BenevolentAI and PostNL NV

0.07

Correlation Coefficient

BenevolentAI  PostNL NV

Significant diversification

The 3 months correlation between BenevolentAI and PostNL is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BenevolentAI SA and PostNL NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PostNL NV and BenevolentAI 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 BenevolentAI SA are associated (or correlated) with PostNL NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PostNL NV has no effect on the direction of BenevolentAI i.e., BenevolentAI and PostNL NV go up and down completely randomly.

Pair Corralation between BenevolentAI and PostNL NV

Assuming the 90 days trading horizon BenevolentAI SA is expected to under-perform the PostNL NV. In addition to that, BenevolentAI is 6.23 times more volatile than PostNL NV. It trades about -0.28 of its total potential returns per unit of risk. PostNL NV is currently generating about -0.03 per unit of volatility. If you would invest  102.00  in PostNL NV on September 19, 2024 and sell it today you would lose (1.00) from holding PostNL NV or give up 0.98% of portfolio value over 90 days.

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

BenevolentAI SA  vs.  PostNL NV

BenevolentAI SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BenevolentAI SA 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 forward indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

PostNL NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PostNL NV 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 essential indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with BenevolentAI and PostNL NV

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

The idea behind BenevolentAI SA and PostNL NV 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .