Correlation Between Asseco Business and Kruk SA
Can any of the company-specific risk be diversified away by investing in both Asseco Business and Kruk 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 Kruk 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 Kruk SA, you can compare the effects of market volatilities on Asseco Business and Kruk 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 Kruk SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and Kruk SA.
Diversification Opportunities for Asseco Business and Kruk SA
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asseco and Kruk is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and Kruk SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kruk 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 Kruk SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kruk SA has no effect on the direction of Asseco Business i.e., Asseco Business and Kruk SA go up and down completely randomly.
Pair Corralation between Asseco Business and Kruk SA
Assuming the 90 days trading horizon Asseco Business Solutions is expected to under-perform the Kruk SA. But the stock apears to be less risky and, when comparing its historical volatility, Asseco Business Solutions is 1.07 times less risky than Kruk SA. The stock trades about -0.34 of its potential returns per unit of risk. The Kruk SA is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 42,820 in Kruk SA on September 3, 2024 and sell it today you would lose (520.00) from holding Kruk SA or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco Business Solutions vs. Kruk SA
Performance |
| Timeline |
| Asseco Business Solutions |
| Kruk SA |
Asseco Business and Kruk SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and Kruk SA
The main advantage of trading using opposite Asseco Business and Kruk SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, Kruk 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 Kruk SA will offset losses from the drop in Kruk SA'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 |
| Kruk SA vs. LSI Software SA | Kruk SA vs. Biztech Konsulting SA | Kruk SA vs. Centrum Finansowe Banku | Kruk SA vs. Play2Chill 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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