Correlation Between Astarta Holding and Asseco South
Can any of the company-specific risk be diversified away by investing in both Astarta Holding and Asseco South 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 Astarta Holding and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astarta Holding NV and Asseco South Eastern, you can compare the effects of market volatilities on Astarta Holding and Asseco South 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 Astarta Holding with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astarta Holding and Asseco South.
Diversification Opportunities for Astarta Holding and Asseco South
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astarta and Asseco is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Astarta Holding NV and Asseco South Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco South Eastern and Astarta Holding 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 Astarta Holding NV are associated (or correlated) with Asseco South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco South Eastern has no effect on the direction of Astarta Holding i.e., Astarta Holding and Asseco South go up and down completely randomly.
Pair Corralation between Astarta Holding and Asseco South
Assuming the 90 days trading horizon Astarta Holding NV is expected to generate 2.17 times more return on investment than Asseco South. However, Astarta Holding is 2.17 times more volatile than Asseco South Eastern. It trades about 0.3 of its potential returns per unit of risk. Asseco South Eastern is currently generating about 0.0 per unit of risk. If you would invest 3,395 in Astarta Holding NV on September 13, 2024 and sell it today you would earn a total of 680.00 from holding Astarta Holding NV or generate 20.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astarta Holding NV vs. Asseco South Eastern
Performance |
| Timeline |
| Astarta Holding NV |
| Asseco South Eastern |
Astarta Holding and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astarta Holding and Asseco South
The main advantage of trading using opposite Astarta Holding and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astarta Holding position performs unexpectedly, Asseco South 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 Asseco South will offset losses from the drop in Asseco South's long position.| Astarta Holding vs. SOFTWARE MANSION SPOLKA | Astarta Holding vs. GreenX Metals | Astarta Holding vs. Creotech Instruments SA | Astarta Holding vs. Globe Trade Centre |
| Asseco South vs. Intersport Polska SA | Asseco South vs. SOFTWARE MANSION SPOLKA | Asseco South vs. New Tech Venture | Asseco South vs. BNP Paribas Bank |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |