Correlation Between Cloud Technologies and Asseco Business
Can any of the company-specific risk be diversified away by investing in both Cloud Technologies and Asseco Business 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 Cloud Technologies and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cloud Technologies SA and Asseco Business Solutions, you can compare the effects of market volatilities on Cloud Technologies and Asseco Business 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 Cloud Technologies with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Technologies and Asseco Business.
Diversification Opportunities for Cloud Technologies and Asseco Business
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cloud and Asseco is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Technologies SA and Asseco Business Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco Business Solutions and Cloud Technologies 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 Cloud Technologies SA are associated (or correlated) with Asseco Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco Business Solutions has no effect on the direction of Cloud Technologies i.e., Cloud Technologies and Asseco Business go up and down completely randomly.
Pair Corralation between Cloud Technologies and Asseco Business
Assuming the 90 days trading horizon Cloud Technologies SA is expected to generate 1.92 times more return on investment than Asseco Business. However, Cloud Technologies is 1.92 times more volatile than Asseco Business Solutions. It trades about -0.07 of its potential returns per unit of risk. Asseco Business Solutions is currently generating about -0.17 per unit of risk. If you would invest 6,480 in Cloud Technologies SA on August 29, 2024 and sell it today you would lose (280.00) from holding Cloud Technologies SA or give up 4.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Technologies SA vs. Asseco Business Solutions
Performance |
| Timeline |
| Cloud Technologies |
| Asseco Business Solutions |
Cloud Technologies and Asseco Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Technologies and Asseco Business
The main advantage of trading using opposite Cloud Technologies and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Technologies position performs unexpectedly, Asseco Business 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 Business will offset losses from the drop in Asseco Business' long position.| Cloud Technologies vs. Asseco Business Solutions | Cloud Technologies vs. Detalion Games SA | Cloud Technologies vs. Asseco South Eastern | Cloud Technologies vs. Movie Games SA |
| Asseco Business vs. Carlson Investments SA | Asseco Business vs. X Trade Brokers | Asseco Business vs. Tower Investments SA | Asseco Business vs. UniCredit SpA |
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 Stocks Directory module to find actively traded stocks across global markets.
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