Correlation Between Asseco South and CEZ As
Can any of the company-specific risk be diversified away by investing in both Asseco South and CEZ As 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 CEZ As 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 CEZ as, you can compare the effects of market volatilities on Asseco South and CEZ As 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 CEZ As. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco South and CEZ As.
Diversification Opportunities for Asseco South and CEZ As
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asseco and CEZ is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Asseco South Eastern and CEZ as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEZ as 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 CEZ As. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEZ as has no effect on the direction of Asseco South i.e., Asseco South and CEZ As go up and down completely randomly.
Pair Corralation between Asseco South and CEZ As
Assuming the 90 days trading horizon Asseco South is expected to generate 48.05 times less return on investment than CEZ As. But when comparing it to its historical volatility, Asseco South Eastern is 2.01 times less risky than CEZ As. It trades about 0.01 of its potential returns per unit of risk. CEZ as is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 15,600 in CEZ as on August 25, 2024 and sell it today you would earn a total of 830.00 from holding CEZ as or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco South Eastern vs. CEZ as
Performance |
| Timeline |
| Asseco South Eastern |
| CEZ as |
Asseco South and CEZ As Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco South and CEZ As
The main advantage of trading using opposite Asseco South and CEZ As positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco South position performs unexpectedly, CEZ As 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 CEZ As will offset losses from the drop in CEZ As' long position.| Asseco South vs. Gaming Factory SA | Asseco South vs. Live Motion Games | Asseco South vs. Ice Code Games | Asseco South vs. Movie Games SA |
| CEZ As vs. True Games Syndicate | CEZ As vs. Logintrade SA | CEZ As vs. Gamedust SA | CEZ As vs. Baked Games 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |