Correlation Between Element Global and Asseco Poland
Can any of the company-specific risk be diversified away by investing in both Element Global 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 Element Global and Asseco Poland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Element Global and Asseco Poland SA, you can compare the effects of market volatilities on Element Global 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 Element Global with a short position of Asseco Poland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Element Global and Asseco Poland.
Diversification Opportunities for Element Global and Asseco Poland
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Element and Asseco is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Element Global 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 Element Global 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 Element Global 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 Element Global i.e., Element Global and Asseco Poland go up and down completely randomly.
Pair Corralation between Element Global and Asseco Poland
If you would invest 2,110 in Asseco Poland SA on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Asseco Poland SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Element Global vs. Asseco Poland SA
Performance |
| Timeline |
| Element Global |
| Asseco Poland SA |
Element Global and Asseco Poland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Element Global and Asseco Poland
The main advantage of trading using opposite Element Global and Asseco Poland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Element Global 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.| Element Global vs. Pool Corporation | Element Global vs. Asbury Automotive Group | Element Global vs. Grocery Outlet Holding | Element Global vs. SunLink Health Systems |
| Asseco Poland vs. Salesforce | Asseco Poland vs. SAP SE ADR | Asseco Poland vs. ServiceNow | Asseco Poland vs. Intuit Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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