Correlation Between PostNL NV and OCI NV

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

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

Diversification Opportunities for PostNL NV and OCI NV

-0.33

Correlation Coefficient

PostNL NV  OCI NV

Very good diversification

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

Pair Corralation between PostNL NV and OCI NV

Assuming the 90 days trading horizon PostNL NV is expected to under-perform the OCI NV. In addition to that, PostNL NV is 1.7 times more volatile than OCI NV. It trades about 0.0 of its total potential returns per unit of risk. OCI NV is currently generating about 0.1 per unit of volatility. If you would invest  680.00  in OCI NV on April 23, 2025 and sell it today you would earn a total of  56.00  from holding OCI NV or generate 8.24% return on investment over 90 days.

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

PostNL NV  vs.  OCI NV

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.

OCI NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OCI NV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, OCI NV may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with PostNL NV and OCI NV

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

The idea behind PostNL NV and OCI 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 Commodity Directory module to find actively traded commodities issued by global exchanges.