Correlation Between Agroton Public and Asseco Business
Can any of the company-specific risk be diversified away by investing in both Agroton Public and Asseco Business 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 Agroton Public and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agroton Public and Asseco Business Solutions, you can compare the effects of market volatilities on Agroton Public and Asseco Business 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 Agroton Public with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agroton Public and Asseco Business.
Diversification Opportunities for Agroton Public and Asseco Business
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agroton and Asseco is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Agroton Public and Asseco Business Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco Business Solutions and Agroton Public 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 Agroton Public are associated (or correlated) with Asseco Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco Business Solutions has no effect on the direction of Agroton Public i.e., Agroton Public and Asseco Business go up and down completely randomly.
Pair Corralation between Agroton Public and Asseco Business
Assuming the 90 days trading horizon Agroton Public is expected to generate 1.68 times more return on investment than Asseco Business. However, Agroton Public is 1.68 times more volatile than Asseco Business Solutions. It trades about 0.08 of its potential returns per unit of risk. Asseco Business Solutions is currently generating about 0.02 per unit of risk. If you would invest 366.00 in Agroton Public on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Agroton Public or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Agroton Public vs. Asseco Business Solutions
Performance |
| Timeline |
| Agroton Public |
| Asseco Business Solutions |
Agroton Public and Asseco Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agroton Public and Asseco Business
The main advantage of trading using opposite Agroton Public and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agroton Public position performs unexpectedly, Asseco Business 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 Asseco Business will offset losses from the drop in Asseco Business' long position.| Agroton Public vs. TEN SQUARE GAMES | Agroton Public vs. Enter Air SA | Agroton Public vs. Carlson Investments SA | Agroton Public vs. MCI Management SA |
| Asseco Business vs. Asseco Poland SA | Asseco Business vs. LSI Software SA | Asseco Business vs. Quantum Software 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |