Correlation Between Asseco Business and MCI Management
Can any of the company-specific risk be diversified away by investing in both Asseco Business and MCI Management 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 MCI Management 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 MCI Management SA, you can compare the effects of market volatilities on Asseco Business and MCI Management 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 MCI Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and MCI Management.
Diversification Opportunities for Asseco Business and MCI Management
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asseco and MCI is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and MCI Management SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCI Management 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 MCI Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCI Management SA has no effect on the direction of Asseco Business i.e., Asseco Business and MCI Management go up and down completely randomly.
Pair Corralation between Asseco Business and MCI Management
Assuming the 90 days trading horizon Asseco Business Solutions is expected to generate 1.75 times more return on investment than MCI Management. However, Asseco Business is 1.75 times more volatile than MCI Management SA. It trades about 0.02 of its potential returns per unit of risk. MCI Management SA is currently generating about -0.21 per unit of risk. If you would invest 5,780 in Asseco Business Solutions on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Asseco Business Solutions or generate 0.35% 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. MCI Management SA
Performance |
| Timeline |
| Asseco Business Solutions |
| MCI Management SA |
Asseco Business and MCI Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and MCI Management
The main advantage of trading using opposite Asseco Business and MCI Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, MCI Management 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 MCI Management will offset losses from the drop in MCI Management'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 |
| MCI Management vs. Echo Investment SA | MCI Management vs. Skyline Investment SA | MCI Management vs. Play2Chill SA | MCI Management vs. Quantum Software 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |