Correlation Between Inter Cars and Asseco Poland
Can any of the company-specific risk be diversified away by investing in both Inter Cars and Asseco Poland 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 Inter Cars and Asseco Poland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Cars SA and Asseco Poland SA, you can compare the effects of market volatilities on Inter Cars and Asseco Poland 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 Inter Cars with a short position of Asseco Poland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Cars and Asseco Poland.
Diversification Opportunities for Inter Cars and Asseco Poland
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inter and Asseco is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Inter Cars SA and Asseco Poland SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco Poland SA and Inter Cars 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 Inter Cars SA are associated (or correlated) with Asseco Poland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco Poland SA has no effect on the direction of Inter Cars i.e., Inter Cars and Asseco Poland go up and down completely randomly.
Pair Corralation between Inter Cars and Asseco Poland
Assuming the 90 days trading horizon Inter Cars is expected to generate 80.82 times less return on investment than Asseco Poland. In addition to that, Inter Cars is 1.16 times more volatile than Asseco Poland SA. It trades about 0.0 of its total potential returns per unit of risk. Asseco Poland SA is currently generating about 0.06 per unit of volatility. If you would invest 7,183 in Asseco Poland SA on September 12, 2024 and sell it today you would earn a total of 2,072 from holding Asseco Poland SA or generate 28.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Cars SA vs. Asseco Poland SA
Performance |
| Timeline |
| Inter Cars SA |
| Asseco Poland SA |
Inter Cars and Asseco Poland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Cars and Asseco Poland
The main advantage of trading using opposite Inter Cars and Asseco Poland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Cars position performs unexpectedly, Asseco Poland 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 Poland will offset losses from the drop in Asseco Poland's long position.| Inter Cars vs. Play2Chill SA | Inter Cars vs. Globe Trade Centre | Inter Cars vs. Centrum Finansowe Banku | Inter Cars vs. Echo Investment SA |
| Asseco Poland vs. Drago entertainment SA | Asseco Poland vs. New Tech Venture | Asseco Poland vs. Medicofarma Biotech SA | Asseco Poland vs. Inter Cars 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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