Correlation Between Asseco Business and Toya SA
Can any of the company-specific risk be diversified away by investing in both Asseco Business and Toya 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 Toya 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 Toya SA, you can compare the effects of market volatilities on Asseco Business and Toya 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 Toya SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and Toya SA.
Diversification Opportunities for Asseco Business and Toya SA
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asseco and Toya is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and Toya SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toya 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 Toya SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toya SA has no effect on the direction of Asseco Business i.e., Asseco Business and Toya SA go up and down completely randomly.
Pair Corralation between Asseco Business and Toya SA
Assuming the 90 days trading horizon Asseco Business Solutions is expected to under-perform the Toya SA. But the stock apears to be less risky and, when comparing its historical volatility, Asseco Business Solutions is 1.24 times less risky than Toya SA. The stock trades about -0.34 of its potential returns per unit of risk. The Toya SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 764.00 in Toya SA on September 2, 2024 and sell it today you would lose (5.00) from holding Toya SA or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco Business Solutions vs. Toya SA
Performance |
| Timeline |
| Asseco Business Solutions |
| Toya SA |
Asseco Business and Toya SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and Toya SA
The main advantage of trading using opposite Asseco Business and Toya SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, Toya 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 Toya SA will offset losses from the drop in Toya SA's long position.| Asseco Business vs. Marie Brizard Wine | Asseco Business vs. LSI Software SA | Asseco Business vs. PZ Cormay SA | Asseco Business vs. 3R Games SA |
| Toya SA vs. Logintrade SA | Toya SA vs. GreenX Metals | Toya SA vs. Noble Financials SA | Toya SA vs. Centrum Finansowe Banku |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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