Correlation Between ArcelorMittal and Inpost SA

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

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

Diversification Opportunities for ArcelorMittal and Inpost SA

-0.51

Correlation Coefficient

ArcelorMittal  Inpost SA

Excellent diversification

The 3 months correlation between ArcelorMittal and Inpost is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding ArcelorMittal SA and Inpost SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpost SA and ArcelorMittal 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 ArcelorMittal SA 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 has no effect on the direction of ArcelorMittal i.e., ArcelorMittal and Inpost SA go up and down completely randomly.

Pair Corralation between ArcelorMittal and Inpost SA

Assuming the 90 days horizon ArcelorMittal SA is expected to generate 1.12 times more return on investment than Inpost SA. However, ArcelorMittal is 1.12 times more volatile than Inpost SA. It trades about 0.05 of its potential returns per unit of risk. Inpost SA is currently generating about -0.11 per unit of risk. If you would invest  2,755  in ArcelorMittal SA on May 17, 2025 and sell it today you would earn a total of  143.00  from holding ArcelorMittal SA or generate 5.19% return on investment over 90 days.

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

ArcelorMittal SA  vs.  Inpost SA

ArcelorMittal SA

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in ArcelorMittal SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ArcelorMittal is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Inpost SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Inpost SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with ArcelorMittal and Inpost SA

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