Correlation Between GreenX Metals and Asseco South
Can any of the company-specific risk be diversified away by investing in both GreenX Metals 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 GreenX Metals and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Asseco South Eastern, you can compare the effects of market volatilities on GreenX Metals 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 GreenX Metals with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Asseco South.
Diversification Opportunities for GreenX Metals and Asseco South
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GreenX and Asseco is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals 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 GreenX Metals 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 GreenX Metals 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 GreenX Metals i.e., GreenX Metals and Asseco South go up and down completely randomly.
Pair Corralation between GreenX Metals and Asseco South
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Asseco South. In addition to that, GreenX Metals is 1.65 times more volatile than Asseco South Eastern. It trades about -0.12 of its total potential returns per unit of risk. Asseco South Eastern is currently generating about 0.0 per unit of volatility. If you would invest 5,000 in Asseco South Eastern on September 14, 2024 and sell it today you would lose (10.00) from holding Asseco South Eastern or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Asseco South Eastern
Performance |
| Timeline |
| GreenX Metals |
| Asseco South Eastern |
GreenX Metals and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Asseco South
The main advantage of trading using opposite GreenX Metals and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals 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.| GreenX Metals vs. LSI Software SA | GreenX Metals vs. ING Bank lski | GreenX Metals vs. Inter Cars SA | GreenX Metals vs. Noble Financials SA |
| Asseco South vs. Intersport Polska SA | Asseco South vs. SOFTWARE MANSION SPOLKA | Asseco South vs. New Tech Venture | Asseco South vs. BNP Paribas Bank |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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