Correlation Between Asseco Business and Agroton Public
Can any of the company-specific risk be diversified away by investing in both Asseco Business and Agroton Public 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 Agroton Public 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 Agroton Public, you can compare the effects of market volatilities on Asseco Business and Agroton Public 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 Agroton Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and Agroton Public.
Diversification Opportunities for Asseco Business and Agroton Public
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asseco and Agroton is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and Agroton Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agroton Public 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 Agroton Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agroton Public has no effect on the direction of Asseco Business i.e., Asseco Business and Agroton Public go up and down completely randomly.
Pair Corralation between Asseco Business and Agroton Public
Assuming the 90 days trading horizon Asseco Business Solutions is expected to generate 0.6 times more return on investment than Agroton Public. However, Asseco Business Solutions is 1.68 times less risky than Agroton Public. It trades about 0.08 of its potential returns per unit of risk. Agroton Public is currently generating about 0.04 per unit of risk. If you would invest 3,835 in Asseco Business Solutions on September 12, 2024 and sell it today you would earn a total of 2,065 from holding Asseco Business Solutions or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco Business Solutions vs. Agroton Public
Performance |
| Timeline |
| Asseco Business Solutions |
| Agroton Public |
Asseco Business and Agroton Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and Agroton Public
The main advantage of trading using opposite Asseco Business and Agroton Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, Agroton Public 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 Agroton Public will offset losses from the drop in Agroton Public's long position.| Asseco Business vs. GreenX Metals | Asseco Business vs. Tower Investments SA | Asseco Business vs. Movie Games SA | Asseco Business vs. Mercator Medical SA |
| Agroton Public vs. Astarta Holding NV | Agroton Public vs. Asseco Business Solutions | Agroton Public vs. Detalion Games SA | Agroton Public vs. Kogeneracja 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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