Correlation Between PostNL NV and Ebusco Holding

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

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

Diversification Opportunities for PostNL NV and Ebusco Holding

0.33

Correlation Coefficient

PostNL NV  Ebusco Holding

Weak diversification

The 3 months correlation between PostNL and Ebusco is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding PostNL NV and Ebusco Holding BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebusco Holding BV and PostNL NV 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 PostNL NV are associated (or correlated) with Ebusco Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebusco Holding BV has no effect on the direction of PostNL NV i.e., PostNL NV and Ebusco Holding go up and down completely randomly.

Pair Corralation between PostNL NV and Ebusco Holding

Assuming the 90 days trading horizon PostNL NV is expected to generate 0.2 times more return on investment than Ebusco Holding. However, PostNL NV is 5.06 times less risky than Ebusco Holding. It trades about 0.01 of its potential returns per unit of risk. Ebusco Holding BV is currently generating about 0.0 per unit of risk. If you would invest  96.00  in PostNL NV on April 24, 2025 and sell it today you would earn a total of  0.00  from holding PostNL NV or generate 0.0% return on investment over 90 days.

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

PostNL NV  vs.  Ebusco Holding BV

PostNL NV

Risk-Adjusted Performance

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 comparatively stable essential indicators, PostNL NV is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Ebusco Holding BV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ebusco Holding BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ebusco Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PostNL NV and Ebusco Holding

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

The idea behind PostNL NV and Ebusco Holding BV 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 Global Correlations module to find global opportunities by holding instruments from different markets.