Correlation Between Immobile and Asseco Business
Can any of the company-specific risk be diversified away by investing in both Immobile 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 Immobile and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immobile and Asseco Business Solutions, you can compare the effects of market volatilities on Immobile 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 Immobile with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immobile and Asseco Business.
Diversification Opportunities for Immobile and Asseco Business
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Immobile and Asseco is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Immobile 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 Immobile 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 Immobile 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 Immobile i.e., Immobile and Asseco Business go up and down completely randomly.
Pair Corralation between Immobile and Asseco Business
Assuming the 90 days trading horizon Immobile is expected to under-perform the Asseco Business. In addition to that, Immobile is 1.41 times more volatile than Asseco Business Solutions. It trades about -0.17 of its total potential returns per unit of risk. Asseco Business Solutions is currently generating about 0.01 per unit of volatility. If you would invest 5,460 in Asseco Business Solutions on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Asseco Business Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immobile vs. Asseco Business Solutions
Performance |
| Timeline |
| Immobile |
| Asseco Business Solutions |
Immobile and Asseco Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immobile and Asseco Business
The main advantage of trading using opposite Immobile and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immobile 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.The idea behind Immobile and Asseco Business Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Asseco Business vs. Immobile | Asseco Business vs. UniCredit SpA | Asseco Business vs. Mlk Foods Public | Asseco Business vs. Movie Games 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |