Correlation Between Ailleron and Asseco Business
Can any of the company-specific risk be diversified away by investing in both Ailleron 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 Ailleron and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ailleron SA and Asseco Business Solutions, you can compare the effects of market volatilities on Ailleron 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 Ailleron with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ailleron and Asseco Business.
Diversification Opportunities for Ailleron and Asseco Business
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ailleron and Asseco is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ailleron SA 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 Ailleron 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 Ailleron SA 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 Ailleron i.e., Ailleron and Asseco Business go up and down completely randomly.
Pair Corralation between Ailleron and Asseco Business
Assuming the 90 days trading horizon Ailleron is expected to generate 1.37 times less return on investment than Asseco Business. In addition to that, Ailleron is 1.21 times more volatile than Asseco Business Solutions. It trades about 0.04 of its total potential returns per unit of risk. Asseco Business Solutions is currently generating about 0.07 per unit of volatility. If you would invest 2,950 in Asseco Business Solutions on September 3, 2024 and sell it today you would earn a total of 2,150 from holding Asseco Business Solutions or generate 72.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ailleron SA vs. Asseco Business Solutions
Performance |
| Timeline |
| Ailleron SA |
| Asseco Business Solutions |
Ailleron and Asseco Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ailleron and Asseco Business
The main advantage of trading using opposite Ailleron and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ailleron 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.| Ailleron vs. Asseco Business Solutions | Ailleron vs. Kogeneracja SA | Ailleron vs. Asseco South Eastern | Ailleron vs. Movie Games SA |
| Asseco Business vs. Mlk Foods Public | Asseco Business vs. Ultimate Games SA | Asseco Business vs. Creotech Instruments SA | Asseco Business vs. Biztech Konsulting 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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