Correlation Between Asseco South and Ailleron
Can any of the company-specific risk be diversified away by investing in both Asseco South and Ailleron 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 South and Ailleron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asseco South Eastern and Ailleron SA, you can compare the effects of market volatilities on Asseco South and Ailleron 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 South with a short position of Ailleron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco South and Ailleron.
Diversification Opportunities for Asseco South and Ailleron
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asseco and Ailleron is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Asseco South Eastern and Ailleron SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ailleron SA and Asseco South 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 South Eastern are associated (or correlated) with Ailleron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ailleron SA has no effect on the direction of Asseco South i.e., Asseco South and Ailleron go up and down completely randomly.
Pair Corralation between Asseco South and Ailleron
Assuming the 90 days trading horizon Asseco South is expected to generate 2.24 times less return on investment than Ailleron. But when comparing it to its historical volatility, Asseco South Eastern is 1.27 times less risky than Ailleron. It trades about 0.03 of its potential returns per unit of risk. Ailleron SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,507 in Ailleron SA on September 4, 2024 and sell it today you would earn a total of 643.00 from holding Ailleron SA or generate 42.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco South Eastern vs. Ailleron SA
Performance |
| Timeline |
| Asseco South Eastern |
| Ailleron SA |
Asseco South and Ailleron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco South and Ailleron
The main advantage of trading using opposite Asseco South and Ailleron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco South position performs unexpectedly, Ailleron 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 Ailleron will offset losses from the drop in Ailleron's long position.| Asseco South vs. New Tech Venture | Asseco South vs. Kool2play SA | Asseco South vs. Cloud Technologies SA | Asseco South vs. Saule Technologies SA |
| Ailleron vs. SOFTWARE MANSION SPOLKA | Ailleron vs. LSI Software SA | Ailleron vs. BNP Paribas Bank | Ailleron vs. Marie Brizard Wine |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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