Correlation Between Asseco Business and Mercator Medical
Can any of the company-specific risk be diversified away by investing in both Asseco Business and Mercator Medical 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 Mercator Medical 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 Mercator Medical SA, you can compare the effects of market volatilities on Asseco Business and Mercator Medical 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 Mercator Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and Mercator Medical.
Diversification Opportunities for Asseco Business and Mercator Medical
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asseco and Mercator is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and Mercator Medical SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercator Medical 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 Mercator Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercator Medical has no effect on the direction of Asseco Business i.e., Asseco Business and Mercator Medical go up and down completely randomly.
Pair Corralation between Asseco Business and Mercator Medical
Assuming the 90 days trading horizon Asseco Business Solutions is expected to generate 0.68 times more return on investment than Mercator Medical. However, Asseco Business Solutions is 1.48 times less risky than Mercator Medical. It trades about -0.11 of its potential returns per unit of risk. Mercator Medical SA is currently generating about -0.14 per unit of risk. If you would invest 5,860 in Asseco Business Solutions on August 29, 2024 and sell it today you would lose (460.00) from holding Asseco Business Solutions or give up 7.85% 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. Mercator Medical SA
Performance |
| Timeline |
| Asseco Business Solutions |
| Mercator Medical |
Asseco Business and Mercator Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and Mercator Medical
The main advantage of trading using opposite Asseco Business and Mercator Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, Mercator Medical 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 Mercator Medical will offset losses from the drop in Mercator Medical's long position.| Asseco Business vs. Asseco Poland SA | Asseco Business vs. LSI Software SA | Asseco Business vs. Quantum Software SA |
| Mercator Medical vs. Asseco Business Solutions | Mercator Medical vs. Detalion Games SA | Mercator Medical vs. CFI Holding SA | Mercator Medical vs. HM Inwest 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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