Correlation Between Asseco Business and Asseco Poland
Can any of the company-specific risk be diversified away by investing in both Asseco Business and Asseco Poland 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 Asseco Business and Asseco Poland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asseco Business Solutions and Asseco Poland SA, you can compare the effects of market volatilities on Asseco Business and Asseco Poland 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 Asseco Business with a short position of Asseco Poland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and Asseco Poland.
Diversification Opportunities for Asseco Business and Asseco Poland
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asseco and Asseco is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and Asseco Poland SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco Poland SA and Asseco Business 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 Asseco Business Solutions are associated (or correlated) with Asseco Poland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco Poland SA has no effect on the direction of Asseco Business i.e., Asseco Business and Asseco Poland go up and down completely randomly.
Pair Corralation between Asseco Business and Asseco Poland
Assuming the 90 days trading horizon Asseco Business Solutions is expected to generate 1.16 times more return on investment than Asseco Poland. However, Asseco Business is 1.16 times more volatile than Asseco Poland SA. It trades about 0.07 of its potential returns per unit of risk. Asseco Poland SA is currently generating about 0.06 per unit of risk. If you would invest 3,540 in Asseco Business Solutions on November 2, 2024 and sell it today you would earn a total of 2,600 from holding Asseco Business Solutions or generate 73.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Asseco Business Solutions vs. Asseco Poland SA
Performance |
| Timeline |
| Asseco Business Solutions |
| Asseco Poland SA |
Asseco Business and Asseco Poland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and Asseco Poland
The main advantage of trading using opposite Asseco Business and Asseco Poland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, Asseco Poland 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 Poland will offset losses from the drop in Asseco Poland's long position.| Asseco Business vs. Vivid Games SA | Asseco Business vs. Movie Games SA | Asseco Business vs. Ultimate Games SA | Asseco Business vs. Gaming Factory SA |
| Asseco Poland vs. Vivid Games SA | Asseco Poland vs. Enter Air SA | Asseco Poland vs. True Games Syndicate | Asseco Poland vs. Echo Investment 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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