Correlation Between Asseco Business and Carlson Investments
Can any of the company-specific risk be diversified away by investing in both Asseco Business and Carlson Investments 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 Carlson Investments 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 Carlson Investments SA, you can compare the effects of market volatilities on Asseco Business and Carlson Investments 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 Carlson Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and Carlson Investments.
Diversification Opportunities for Asseco Business and Carlson Investments
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asseco and Carlson is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and Carlson Investments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlson Investments 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 Carlson Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlson Investments has no effect on the direction of Asseco Business i.e., Asseco Business and Carlson Investments go up and down completely randomly.
Pair Corralation between Asseco Business and Carlson Investments
Assuming the 90 days trading horizon Asseco Business Solutions is expected to generate 0.35 times more return on investment than Carlson Investments. However, Asseco Business Solutions is 2.88 times less risky than Carlson Investments. It trades about 0.09 of its potential returns per unit of risk. Carlson Investments SA is currently generating about -0.07 per unit of risk. If you would invest 2,868 in Asseco Business Solutions on August 28, 2024 and sell it today you would earn a total of 2,632 from holding Asseco Business Solutions or generate 91.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco Business Solutions vs. Carlson Investments SA
Performance |
| Timeline |
| Asseco Business Solutions |
| Carlson Investments |
Asseco Business and Carlson Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and Carlson Investments
The main advantage of trading using opposite Asseco Business and Carlson Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, Carlson Investments 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 Carlson Investments will offset losses from the drop in Carlson Investments' long position.| Asseco Business vs. Centrum Finansowe Banku | Asseco Business vs. Mlk Foods Public | Asseco Business vs. Pyramid Games SA | Asseco Business vs. Santander Bank Polska |
| Carlson Investments vs. Movie Games SA | Carlson Investments vs. Gaming Factory SA | Carlson Investments vs. Creotech Instruments SA | Carlson Investments vs. Pyramid Games 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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