Correlation Between Asseco Business and Polski Koncern
Can any of the company-specific risk be diversified away by investing in both Asseco Business and Polski Koncern 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 Polski Koncern 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 Polski Koncern Naftowy, you can compare the effects of market volatilities on Asseco Business and Polski Koncern 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 Polski Koncern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and Polski Koncern.
Diversification Opportunities for Asseco Business and Polski Koncern
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asseco and Polski is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and Polski Koncern Naftowy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polski Koncern Naftowy 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 Polski Koncern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polski Koncern Naftowy has no effect on the direction of Asseco Business i.e., Asseco Business and Polski Koncern go up and down completely randomly.
Pair Corralation between Asseco Business and Polski Koncern
Assuming the 90 days trading horizon Asseco Business Solutions is expected to generate 0.97 times more return on investment than Polski Koncern. However, Asseco Business Solutions is 1.03 times less risky than Polski Koncern. It trades about 0.08 of its potential returns per unit of risk. Polski Koncern Naftowy is currently generating about 0.0 per unit of risk. If you would invest 3,730 in Asseco Business Solutions on August 28, 2024 and sell it today you would earn a total of 1,770 from holding Asseco Business Solutions or generate 47.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco Business Solutions vs. Polski Koncern Naftowy
Performance |
| Timeline |
| Asseco Business Solutions |
| Polski Koncern Naftowy |
Asseco Business and Polski Koncern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and Polski Koncern
The main advantage of trading using opposite Asseco Business and Polski Koncern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, Polski Koncern 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 Polski Koncern will offset losses from the drop in Polski Koncern's long position.| Asseco Business vs. Carlson Investments SA | Asseco Business vs. X Trade Brokers | Asseco Business vs. Tower Investments SA | Asseco Business vs. UniCredit SpA |
| Polski Koncern vs. Asseco Business Solutions | Polski Koncern vs. Detalion Games SA | Polski Koncern vs. Asseco South Eastern | Polski Koncern vs. Movie 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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