Correlation Between Immobile and Asseco South
Can any of the company-specific risk be diversified away by investing in both Immobile 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 Immobile and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immobile and Asseco South Eastern, you can compare the effects of market volatilities on Immobile 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 Immobile with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immobile and Asseco South.
Diversification Opportunities for Immobile and Asseco South
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Immobile and Asseco is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Immobile 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 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 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 Immobile i.e., Immobile and Asseco South go up and down completely randomly.
Pair Corralation between Immobile and Asseco South
Assuming the 90 days trading horizon Immobile is expected to generate 1.74 times more return on investment than Asseco South. However, Immobile is 1.74 times more volatile than Asseco South Eastern. It trades about 0.08 of its potential returns per unit of risk. Asseco South Eastern is currently generating about -0.1 per unit of risk. If you would invest 191.00 in Immobile on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Immobile or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immobile vs. Asseco South Eastern
Performance |
| Timeline |
| Immobile |
| Asseco South Eastern |
Immobile and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immobile and Asseco South
The main advantage of trading using opposite Immobile and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immobile 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.The idea behind Immobile and Asseco South Eastern 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 South vs. Skyline Investment SA | Asseco South vs. Immobile | Asseco South vs. CI Games SA | Asseco South 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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