Correlation Between Asseco South and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both Asseco South and Intersport Polska 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 Intersport Polska 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 Intersport Polska SA, you can compare the effects of market volatilities on Asseco South and Intersport Polska 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 Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco South and Intersport Polska.
Diversification Opportunities for Asseco South and Intersport Polska
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asseco and Intersport is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Asseco South Eastern and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska 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 Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of Asseco South i.e., Asseco South and Intersport Polska go up and down completely randomly.
Pair Corralation between Asseco South and Intersport Polska
Assuming the 90 days trading horizon Asseco South Eastern is expected to generate 0.33 times more return on investment than Intersport Polska. However, Asseco South Eastern is 3.0 times less risky than Intersport Polska. It trades about 0.03 of its potential returns per unit of risk. Intersport Polska SA is currently generating about 0.01 per unit of risk. If you would invest 4,273 in Asseco South Eastern on August 24, 2024 and sell it today you would earn a total of 697.00 from holding Asseco South Eastern or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asseco South Eastern vs. Intersport Polska SA
Performance |
| Timeline |
| Asseco South Eastern |
| Intersport Polska |
Asseco South and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco South and Intersport Polska
The main advantage of trading using opposite Asseco South and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco South position performs unexpectedly, Intersport Polska 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 Intersport Polska will offset losses from the drop in Intersport Polska'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 |
| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska vs. Movie 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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