Correlation Between KBC Ancora and INPOST SA

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

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

Diversification Opportunities for KBC Ancora and INPOST SA

-0.53

Correlation Coefficient

KBC Ancora  INPOST SA

Excellent diversification

The 3 months correlation between KBC and INPOST is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding KBC Ancora SCA 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 KBC Ancora 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 KBC Ancora SCA 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 KBC Ancora i.e., KBC Ancora and INPOST SA go up and down completely randomly.

Pair Corralation between KBC Ancora and INPOST SA

Assuming the 90 days horizon KBC Ancora SCA is expected to generate 0.73 times more return on investment than INPOST SA. However, KBC Ancora SCA is 1.36 times less risky than INPOST SA. It trades about 0.16 of its potential returns per unit of risk. INPOST SA EO is currently generating about -0.08 per unit of risk. If you would invest  5,355  in KBC Ancora SCA on April 24, 2025 and sell it today you would earn a total of  705.00  from holding KBC Ancora SCA or generate 13.17% return on investment over 90 days.

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

KBC Ancora SCA  vs.  INPOST SA EO

KBC Ancora SCA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KBC Ancora SCA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, KBC Ancora reported solid returns over the last few months and may actually be approaching a breakup point.

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 latest weak 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.

Pair Trading with KBC Ancora and INPOST SA

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

Check out your portfolio center.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..