Correlation Between Asseco Business and Inpro SA
Can any of the company-specific risk be diversified away by investing in both Asseco Business and Inpro SA 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 Inpro SA 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 Inpro SA, you can compare the effects of market volatilities on Asseco Business and Inpro SA 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 Inpro SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and Inpro SA.
Diversification Opportunities for Asseco Business and Inpro SA
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asseco and Inpro is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and Inpro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpro 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 Inpro SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inpro SA has no effect on the direction of Asseco Business i.e., Asseco Business and Inpro SA go up and down completely randomly.
Pair Corralation between Asseco Business and Inpro SA
Assuming the 90 days trading horizon Asseco Business Solutions is expected to generate 0.99 times more return on investment than Inpro SA. However, Asseco Business Solutions is 1.01 times less risky than Inpro SA. It trades about 0.02 of its potential returns per unit of risk. Inpro SA is currently generating about -0.12 per unit of risk. If you would invest 5,740 in Asseco Business Solutions on September 12, 2024 and sell it today you would earn a total of 60.00 from holding Asseco Business Solutions or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Asseco Business Solutions vs. Inpro SA
Performance |
| Timeline |
| Asseco Business Solutions |
| Inpro SA |
Asseco Business and Inpro SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and Inpro SA
The main advantage of trading using opposite Asseco Business and Inpro SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, Inpro SA 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 Inpro SA will offset losses from the drop in Inpro SA's long position.| Asseco Business vs. Inter Cars SA | Asseco Business vs. Skyline Investment SA | Asseco Business vs. GreenX Metals | Asseco Business vs. PMPG Polskie Media |
| Inpro SA vs. Santander Bank Polska | Inpro SA vs. Noble Financials SA | Inpro SA vs. MW Trade SA | Inpro SA vs. BNP Paribas Bank |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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