Correlation Between InRetail Per and SP Global

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

By analyzing existing cross correlation between InRetail Per Corp and SP Global 100, you can compare the effects of market volatilities on InRetail Per and SP Global 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 InRetail Per with a short position of SP Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of InRetail Per and SP Global.

Diversification Opportunities for InRetail Per and SP Global

0.0

Correlation Coefficient

InRetail Per  SP Global

Pay attention - limited upside

The 3 months correlation between InRetail and OOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding InRetail Per Corp and SP Global 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Global 100 and InRetail Per 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 InRetail Per Corp are associated (or correlated) with SP Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Global 100 has no effect on the direction of InRetail Per i.e., InRetail Per and SP Global go up and down completely randomly.

Pair Corralation between InRetail Per and SP Global

If you would invest  455,569  in SP Global 100 on July 25, 2025 and sell it today you would earn a total of  34,240  from holding SP Global 100 or generate 7.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

InRetail Per Corp  vs.  SP Global 100

Pair Trading with InRetail Per and SP Global

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

The idea behind InRetail Per Corp and SP Global 100 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.