Correlation Between Asseco Business and Adiuvo Investment
Can any of the company-specific risk be diversified away by investing in both Asseco Business and Adiuvo Investment 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 Adiuvo Investment 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 Adiuvo Investment SA, you can compare the effects of market volatilities on Asseco Business and Adiuvo Investment 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 Adiuvo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and Adiuvo Investment.
Diversification Opportunities for Asseco Business and Adiuvo Investment
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asseco and Adiuvo is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and Adiuvo Investment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adiuvo Investment 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 Adiuvo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adiuvo Investment has no effect on the direction of Asseco Business i.e., Asseco Business and Adiuvo Investment go up and down completely randomly.
Pair Corralation between Asseco Business and Adiuvo Investment
Assuming the 90 days trading horizon Asseco Business Solutions is expected to generate 0.21 times more return on investment than Adiuvo Investment. However, Asseco Business Solutions is 4.8 times less risky than Adiuvo Investment. It trades about -0.34 of its potential returns per unit of risk. Adiuvo Investment SA is currently generating about -0.24 per unit of risk. If you would invest 5,600 in Asseco Business Solutions on September 3, 2024 and sell it today you would lose (500.00) from holding Asseco Business Solutions or give up 8.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco Business Solutions vs. Adiuvo Investment SA
Performance |
| Timeline |
| Asseco Business Solutions |
| Adiuvo Investment |
Asseco Business and Adiuvo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and Adiuvo Investment
The main advantage of trading using opposite Asseco Business and Adiuvo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, Adiuvo Investment 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 Adiuvo Investment will offset losses from the drop in Adiuvo Investment's long position.| Asseco Business vs. Mlk Foods Public | Asseco Business vs. Ultimate Games SA | Asseco Business vs. Creotech Instruments SA | Asseco Business vs. Biztech Konsulting SA |
| Adiuvo Investment vs. Medicalg | Adiuvo Investment vs. Asseco Business Solutions | Adiuvo Investment vs. Kogeneracja SA | Adiuvo Investment vs. Asseco South Eastern |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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