Correlation Between AB SA and Asseco South
Can any of the company-specific risk be diversified away by investing in both AB SA and Asseco South 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 AB SA and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AB SA and Asseco South Eastern, you can compare the effects of market volatilities on AB SA and Asseco South 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 AB SA with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of AB SA and Asseco South.
Diversification Opportunities for AB SA and Asseco South
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ABE and Asseco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AB SA and Asseco South Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco South Eastern and AB SA 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 AB SA are associated (or correlated) with Asseco South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco South Eastern has no effect on the direction of AB SA i.e., AB SA and Asseco South go up and down completely randomly.
Pair Corralation between AB SA and Asseco South
Assuming the 90 days trading horizon AB SA is expected to under-perform the Asseco South. In addition to that, AB SA is 2.08 times more volatile than Asseco South Eastern. It trades about -0.01 of its total potential returns per unit of risk. Asseco South Eastern is currently generating about 0.04 per unit of volatility. If you would invest 4,930 in Asseco South Eastern on August 26, 2024 and sell it today you would earn a total of 40.00 from holding Asseco South Eastern or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AB SA vs. Asseco South Eastern
Performance |
| Timeline |
| AB SA |
| Asseco South Eastern |
AB SA and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AB SA and Asseco South
The main advantage of trading using opposite AB SA and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AB SA position performs unexpectedly, Asseco South 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 Asseco South will offset losses from the drop in Asseco South's long position.| AB SA vs. Asseco South Eastern | AB SA vs. Vercom SA | AB SA vs. Gobarto SA | AB SA vs. Beta mWIG40TR Portfelowy |
| Asseco South vs. Echo Investment SA | Asseco South vs. Mlk Foods Public | Asseco South vs. Quantum Software SA | Asseco South vs. Cloud Technologies SA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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