Correlation Between Balticon and Asseco South
Can any of the company-specific risk be diversified away by investing in both Balticon 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 Balticon and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balticon and Asseco South Eastern, you can compare the effects of market volatilities on Balticon 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 Balticon with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balticon and Asseco South.
Diversification Opportunities for Balticon and Asseco South
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Balticon and Asseco is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Balticon 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 Balticon 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 Balticon 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 Balticon i.e., Balticon and Asseco South go up and down completely randomly.
Pair Corralation between Balticon and Asseco South
Assuming the 90 days trading horizon Balticon is expected to generate 4.28 times more return on investment than Asseco South. However, Balticon is 4.28 times more volatile than Asseco South Eastern. It trades about 0.31 of its potential returns per unit of risk. Asseco South Eastern is currently generating about -0.14 per unit of risk. If you would invest 1,100 in Balticon on August 30, 2024 and sell it today you would earn a total of 240.00 from holding Balticon or generate 21.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Balticon vs. Asseco South Eastern
Performance |
| Timeline |
| Balticon |
| Asseco South Eastern |
Balticon and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balticon and Asseco South
The main advantage of trading using opposite Balticon and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balticon 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.| Balticon vs. LSI Software SA | Balticon vs. Road Studio SA | Balticon vs. SOFTWARE MANSION SPOLKA | Balticon vs. Enter Air SA |
| Asseco South vs. Bank Millennium SA | Asseco South vs. Quantum Software SA | Asseco South vs. Santander Bank Polska | Asseco South vs. Echo Investment 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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