Correlation Between Asseco Business and X Trade
Can any of the company-specific risk be diversified away by investing in both Asseco Business and X Trade 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 X Trade 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 X Trade Brokers, you can compare the effects of market volatilities on Asseco Business and X Trade 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 X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and X Trade.
Diversification Opportunities for Asseco Business and X Trade
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asseco and XTB is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers 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 X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Asseco Business i.e., Asseco Business and X Trade go up and down completely randomly.
Pair Corralation between Asseco Business and X Trade
Assuming the 90 days trading horizon Asseco Business is expected to generate 4.66 times less return on investment than X Trade. In addition to that, Asseco Business is 1.67 times more volatile than X Trade Brokers. It trades about 0.02 of its total potential returns per unit of risk. X Trade Brokers is currently generating about 0.14 per unit of volatility. If you would invest 6,932 in X Trade Brokers on September 12, 2024 and sell it today you would earn a total of 232.00 from holding X Trade Brokers or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Asseco Business Solutions vs. X Trade Brokers
Performance |
| Timeline |
| Asseco Business Solutions |
| X Trade Brokers |
Asseco Business and X Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Business and X Trade
The main advantage of trading using opposite Asseco Business and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, X Trade 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 X Trade will offset losses from the drop in X Trade's long position.| Asseco Business vs. GreenX Metals | Asseco Business vs. Tower Investments SA | Asseco Business vs. Movie Games SA | Asseco Business vs. Mercator Medical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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