Correlation Between Gobarto SA and Asseco Business
Can any of the company-specific risk be diversified away by investing in both Gobarto SA 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 Gobarto SA and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gobarto SA and Asseco Business Solutions, you can compare the effects of market volatilities on Gobarto SA 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 Gobarto SA with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gobarto SA and Asseco Business.
Diversification Opportunities for Gobarto SA and Asseco Business
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gobarto and Asseco is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gobarto 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 Gobarto 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 Gobarto 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 Gobarto SA i.e., Gobarto SA and Asseco Business go up and down completely randomly.
Pair Corralation between Gobarto SA and Asseco Business
Assuming the 90 days trading horizon Gobarto SA is expected to generate 2.5 times more return on investment than Asseco Business. However, Gobarto SA is 2.5 times more volatile than Asseco Business Solutions. It trades about -0.05 of its potential returns per unit of risk. Asseco Business Solutions is currently generating about -0.29 per unit of risk. If you would invest 3,300 in Gobarto SA on August 30, 2024 and sell it today you would lose (140.00) from holding Gobarto SA or give up 4.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gobarto SA vs. Asseco Business Solutions
Performance |
| Timeline |
| Gobarto SA |
| Asseco Business Solutions |
Gobarto SA and Asseco Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gobarto SA and Asseco Business
The main advantage of trading using opposite Gobarto SA and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gobarto SA 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.| Gobarto SA vs. Carlson Investments SA | Gobarto SA vs. PZ Cormay SA | Gobarto SA vs. Detalion Games SA | Gobarto SA vs. Baked 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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