Correlation Between Enea SA and Asseco South
Can any of the company-specific risk be diversified away by investing in both Enea SA 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 Enea SA and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enea SA and Asseco South Eastern, you can compare the effects of market volatilities on Enea SA 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 Enea SA with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enea SA and Asseco South.
Diversification Opportunities for Enea SA and Asseco South
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enea and Asseco is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Enea SA 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 Enea SA 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 Enea SA 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 Enea SA i.e., Enea SA and Asseco South go up and down completely randomly.
Pair Corralation between Enea SA and Asseco South
Assuming the 90 days trading horizon Enea SA is expected to generate 1.55 times more return on investment than Asseco South. However, Enea SA is 1.55 times more volatile than Asseco South Eastern. It trades about 0.13 of its potential returns per unit of risk. Asseco South Eastern is currently generating about -0.06 per unit of risk. If you would invest 1,017 in Enea SA on August 28, 2024 and sell it today you would earn a total of 183.00 from holding Enea SA or generate 17.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enea SA vs. Asseco South Eastern
Performance |
| Timeline |
| Enea SA |
| Asseco South Eastern |
Enea SA and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enea SA and Asseco South
The main advantage of trading using opposite Enea SA and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enea SA 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.| Enea SA vs. Asseco South Eastern | Enea SA vs. Vercom SA | Enea SA vs. Gobarto SA | Enea SA vs. Beta mWIG40TR Portfelowy |
| Asseco South vs. Banco Santander SA | Asseco South vs. UniCredit SpA | Asseco South vs. CEZ as | Asseco South vs. Polski Koncern Naftowy |
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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