Correlation Between Asseco South and Pyramid Games
Can any of the company-specific risk be diversified away by investing in both Asseco South and Pyramid Games 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 Pyramid Games 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 Pyramid Games SA, you can compare the effects of market volatilities on Asseco South and Pyramid Games 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 Pyramid Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco South and Pyramid Games.
Diversification Opportunities for Asseco South and Pyramid Games
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asseco and Pyramid is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Asseco South Eastern and Pyramid Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyramid Games 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 Pyramid Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyramid Games SA has no effect on the direction of Asseco South i.e., Asseco South and Pyramid Games go up and down completely randomly.
Pair Corralation between Asseco South and Pyramid Games
Assuming the 90 days trading horizon Asseco South Eastern is expected to generate 0.42 times more return on investment than Pyramid Games. However, Asseco South Eastern is 2.38 times less risky than Pyramid Games. It trades about 0.02 of its potential returns per unit of risk. Pyramid Games SA is currently generating about -0.04 per unit of risk. If you would invest 4,207 in Asseco South Eastern on August 30, 2024 and sell it today you would earn a total of 603.00 from holding Asseco South Eastern or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.56% |
| Values | Daily Returns |
Asseco South Eastern vs. Pyramid Games SA
Performance |
| Timeline |
| Asseco South Eastern |
| Pyramid Games SA |
Asseco South and Pyramid Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asseco South and Pyramid Games
The main advantage of trading using opposite Asseco South and Pyramid Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco South position performs unexpectedly, Pyramid Games 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 Pyramid Games will offset losses from the drop in Pyramid Games' long position.| Asseco South vs. Bank Millennium SA | Asseco South vs. Quantum Software SA | Asseco South vs. Santander Bank Polska | Asseco South vs. Echo Investment SA |
| Pyramid Games vs. Movie Games SA | Pyramid Games vs. Mlk Foods Public | Pyramid Games vs. Quantum Software SA | Pyramid Games vs. PLAYWAY 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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