Correlation Between Apator SA and Asseco Business
Can any of the company-specific risk be diversified away by investing in both Apator SA 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 Apator SA and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apator SA and Asseco Business Solutions, you can compare the effects of market volatilities on Apator SA 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 Apator SA with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apator SA and Asseco Business.
Diversification Opportunities for Apator SA and Asseco Business
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apator and Asseco is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Apator 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 Apator SA 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 Apator 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 Apator SA i.e., Apator SA and Asseco Business go up and down completely randomly.
Pair Corralation between Apator SA and Asseco Business
Assuming the 90 days trading horizon Apator SA is expected to generate 2.45 times less return on investment than Asseco Business. But when comparing it to its historical volatility, Apator SA is 1.15 times less risky than Asseco Business. It trades about 0.04 of its potential returns per unit of risk. Asseco Business Solutions is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,950 in Asseco Business Solutions on August 30, 2024 and sell it today you would earn a total of 2,370 from holding Asseco Business Solutions or generate 80.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apator SA vs. Asseco Business Solutions
Performance |
| Timeline |
| Apator SA |
| Asseco Business Solutions |
Apator SA and Asseco Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apator SA and Asseco Business
The main advantage of trading using opposite Apator SA and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apator SA 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.| Apator SA vs. Asseco Business Solutions | Apator SA vs. Detalion Games SA | Apator SA vs. Asseco South Eastern | Apator SA vs. Vercom 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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