Correlation Between Asseco Poland and Drago Entertainment
Can any of the company-specific risk be diversified away by investing in both Asseco Poland and Drago Entertainment 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 Poland and Drago Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asseco Poland SA and Drago entertainment SA, you can compare the effects of market volatilities on Asseco Poland and Drago Entertainment 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 Poland with a short position of Drago Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Poland and Drago Entertainment.
Diversification Opportunities for Asseco Poland and Drago Entertainment
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asseco and Drago is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Poland SA and Drago entertainment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Drago entertainment and Asseco Poland 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 Poland SA are associated (or correlated) with Drago Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Drago entertainment has no effect on the direction of Asseco Poland i.e., Asseco Poland and Drago Entertainment go up and down completely randomly.
Pair Corralation between Asseco Poland and Drago Entertainment
Assuming the 90 days trading horizon Asseco Poland SA is expected to generate 0.42 times more return on investment than Drago Entertainment. However, Asseco Poland SA is 2.39 times less risky than Drago Entertainment. It trades about 0.06 of its potential returns per unit of risk. Drago entertainment SA is currently generating about -0.06 per unit of risk. If you would invest 7,183 in Asseco Poland SA on September 12, 2024 and sell it today you would earn a total of 2,072 from holding Asseco Poland SA or generate 28.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco Poland SA vs. Drago entertainment SA
Performance |
| Timeline |
| Asseco Poland SA |
| Drago entertainment |
Asseco Poland and Drago Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco Poland and Drago Entertainment
The main advantage of trading using opposite Asseco Poland and Drago Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Poland position performs unexpectedly, Drago Entertainment 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 Drago Entertainment will offset losses from the drop in Drago Entertainment's long position.| Asseco Poland vs. Drago entertainment SA | Asseco Poland vs. New Tech Venture | Asseco Poland vs. Medicofarma Biotech SA | Asseco Poland vs. Inter Cars SA |
| Drago Entertainment vs. Banco Santander SA | Drago Entertainment vs. UniCredit SpA | Drago Entertainment vs. CEZ as | Drago Entertainment vs. Polski Koncern Naftowy |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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