Correlation Between Gobarto SA and Asseco South
Can any of the company-specific risk be diversified away by investing in both Gobarto 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 Gobarto 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 Gobarto SA and Asseco South Eastern, you can compare the effects of market volatilities on Gobarto 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 Gobarto SA with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gobarto SA and Asseco South.
Diversification Opportunities for Gobarto SA and Asseco South
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gobarto and Asseco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gobarto 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 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 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 Gobarto SA i.e., Gobarto SA and Asseco South go up and down completely randomly.
Pair Corralation between Gobarto SA and Asseco South
Assuming the 90 days trading horizon Gobarto SA is expected to generate 2.82 times more return on investment than Asseco South. However, Gobarto SA is 2.82 times more volatile than Asseco South Eastern. It trades about 0.07 of its potential returns per unit of risk. Asseco South Eastern is currently generating about 0.02 per unit of risk. If you would invest 820.00 in Gobarto SA on November 2, 2024 and sell it today you would earn a total of 1,810 from holding Gobarto SA or generate 220.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gobarto SA vs. Asseco South Eastern
Performance |
| Timeline |
| Gobarto SA |
| Asseco South Eastern |
Gobarto SA and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gobarto SA and Asseco South
The main advantage of trading using opposite Gobarto SA and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gobarto 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.| Gobarto SA vs. Gamedust SA | Gobarto SA vs. LSI Software SA | Gobarto SA vs. Drago entertainment SA | Gobarto SA vs. CI Games SA |
| Asseco South vs. ING Bank lski | Asseco South vs. Investment Friends Capital | Asseco South vs. UniCredit SpA | Asseco South vs. Echo Investment 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |