Correlation Between Asseco South and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Asseco South and GreenX Metals 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 GreenX Metals 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 GreenX Metals, you can compare the effects of market volatilities on Asseco South and GreenX Metals 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco South and GreenX Metals.
Diversification Opportunities for Asseco South and GreenX Metals
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asseco and GreenX is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Asseco South Eastern and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Asseco South i.e., Asseco South and GreenX Metals go up and down completely randomly.
Pair Corralation between Asseco South and GreenX Metals
Assuming the 90 days trading horizon Asseco South is expected to generate 6.93 times less return on investment than GreenX Metals. But when comparing it to its historical volatility, Asseco South Eastern is 4.53 times less risky than GreenX Metals. It trades about 0.02 of its potential returns per unit of risk. GreenX Metals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 175.00 in GreenX Metals on August 25, 2024 and sell it today you would earn a total of 1.00 from holding GreenX Metals or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco South Eastern vs. GreenX Metals
Performance |
| Timeline |
| Asseco South Eastern |
| GreenX Metals |
Asseco South and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco South and GreenX Metals
The main advantage of trading using opposite Asseco South and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco South position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' 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 |
| GreenX Metals vs. Jastrzebska Spotka Weglowa | GreenX Metals vs. Asseco Business Solutions | GreenX Metals vs. Detalion Games SA | GreenX Metals 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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