Correlation Between Asseco South and Ice Code
Can any of the company-specific risk be diversified away by investing in both Asseco South and Ice Code 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 Ice Code 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 Ice Code Games, you can compare the effects of market volatilities on Asseco South and Ice Code 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 Ice Code. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco South and Ice Code.
Diversification Opportunities for Asseco South and Ice Code
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asseco and Ice is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Asseco South Eastern and Ice Code Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ice Code Games 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 Ice Code. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ice Code Games has no effect on the direction of Asseco South i.e., Asseco South and Ice Code go up and down completely randomly.
Pair Corralation between Asseco South and Ice Code
Assuming the 90 days trading horizon Asseco South Eastern is expected to generate 0.16 times more return on investment than Ice Code. However, Asseco South Eastern is 6.39 times less risky than Ice Code. It trades about -0.13 of its potential returns per unit of risk. Ice Code Games is currently generating about -0.36 per unit of risk. If you would invest 5,000 in Asseco South Eastern on August 30, 2024 and sell it today you would lose (190.00) from holding Asseco South Eastern or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Asseco South Eastern vs. Ice Code Games
Performance |
| Timeline |
| Asseco South Eastern |
| Ice Code Games |
Asseco South and Ice Code Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco South and Ice Code
The main advantage of trading using opposite Asseco South and Ice Code positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco South position performs unexpectedly, Ice Code 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 Ice Code will offset losses from the drop in Ice Code's long position.| Asseco South vs. UF Games SA | Asseco South vs. LSI Software SA | Asseco South vs. CI Games SA | Asseco South vs. SOFTWARE MANSION SPOLKA |
| Ice Code vs. Echo Investment SA | Ice Code vs. Mlk Foods Public | Ice Code vs. Marie Brizard Wine | Ice Code vs. Immobile |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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