Correlation Between Asseco South and Inpro SA
Can any of the company-specific risk be diversified away by investing in both Asseco South and Inpro SA 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 Inpro SA 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 Inpro SA, you can compare the effects of market volatilities on Asseco South and Inpro SA 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 Inpro SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco South and Inpro SA.
Diversification Opportunities for Asseco South and Inpro SA
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asseco and Inpro is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Asseco South Eastern and Inpro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpro 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 Inpro SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inpro SA has no effect on the direction of Asseco South i.e., Asseco South and Inpro SA go up and down completely randomly.
Pair Corralation between Asseco South and Inpro SA
Assuming the 90 days trading horizon Asseco South Eastern is expected to generate 0.67 times more return on investment than Inpro SA. However, Asseco South Eastern is 1.49 times less risky than Inpro SA. It trades about 0.0 of its potential returns per unit of risk. Inpro SA is currently generating about -0.06 per unit of risk. If you would invest 5,000 in Asseco South Eastern on September 13, 2024 and sell it today you would lose (10.00) from holding Asseco South Eastern or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco South Eastern vs. Inpro SA
Performance |
| Timeline |
| Asseco South Eastern |
| Inpro SA |
Asseco South and Inpro SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco South and Inpro SA
The main advantage of trading using opposite Asseco South and Inpro SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco South position performs unexpectedly, Inpro SA 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 Inpro SA will offset losses from the drop in Inpro SA's long position.| Asseco South vs. Intersport Polska SA | Asseco South vs. SOFTWARE MANSION SPOLKA | Asseco South vs. New Tech Venture | Asseco South vs. BNP Paribas Bank |
| Inpro SA vs. Quantum Software SA | Inpro SA vs. Road Studio SA | Inpro SA vs. X Trade Brokers | Inpro SA vs. Varsav Game Studios |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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