Correlation Between Asseco South and Immobile
Can any of the company-specific risk be diversified away by investing in both Asseco South and Immobile 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 Immobile 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 Immobile, you can compare the effects of market volatilities on Asseco South and Immobile 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 Immobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco South and Immobile.
Diversification Opportunities for Asseco South and Immobile
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asseco and Immobile is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Asseco South Eastern and Immobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immobile 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 Immobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immobile has no effect on the direction of Asseco South i.e., Asseco South and Immobile go up and down completely randomly.
Pair Corralation between Asseco South and Immobile
Assuming the 90 days trading horizon Asseco South Eastern is expected to generate 0.58 times more return on investment than Immobile. However, Asseco South Eastern is 1.72 times less risky than Immobile. It trades about 0.02 of its potential returns per unit of risk. Immobile is currently generating about -0.03 per unit of risk. If you would invest 4,598 in Asseco South Eastern on September 12, 2024 and sell it today you would earn a total of 302.00 from holding Asseco South Eastern or generate 6.57% 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. Immobile
Performance |
| Timeline |
| Asseco South Eastern |
| Immobile |
Asseco South and Immobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco South and Immobile
The main advantage of trading using opposite Asseco South and Immobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco South position performs unexpectedly, Immobile 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 Immobile will offset losses from the drop in Immobile's long position.| Asseco South vs. Banco Santander SA | Asseco South vs. UniCredit SpA | Asseco South vs. CEZ as | Asseco South vs. Polski Koncern Naftowy |
| Immobile vs. MCI Management SA | Immobile vs. Asseco Business Solutions | Immobile vs. Detalion Games SA | Immobile vs. Asseco South Eastern |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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