Correlation Between Inpro SA and Asseco South
Can any of the company-specific risk be diversified away by investing in both Inpro 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 Inpro 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 Inpro SA and Asseco South Eastern, you can compare the effects of market volatilities on Inpro 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 Inpro SA with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inpro SA and Asseco South.
Diversification Opportunities for Inpro SA and Asseco South
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inpro and Asseco is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Inpro 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 Inpro 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 Inpro 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 Inpro SA i.e., Inpro SA and Asseco South go up and down completely randomly.
Pair Corralation between Inpro SA and Asseco South
Assuming the 90 days trading horizon Inpro SA is expected to under-perform the Asseco South. In addition to that, Inpro SA is 1.49 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 0.05 per unit of volatility. If you would invest 4,800 in Asseco South Eastern on September 12, 2024 and sell it today you would earn a total of 170.00 from holding Asseco South Eastern or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Inpro SA vs. Asseco South Eastern
Performance |
| Timeline |
| Inpro SA |
| Asseco South Eastern |
Inpro SA and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inpro SA and Asseco South
The main advantage of trading using opposite Inpro SA and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inpro 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.| Inpro SA vs. Santander Bank Polska | Inpro SA vs. Noble Financials SA | Inpro SA vs. MW Trade SA | Inpro SA vs. BNP Paribas Bank |
| Asseco South vs. CI Games SA | Asseco South vs. Quantum Software SA | Asseco South vs. Medicalg | Asseco South vs. GreenX Metals |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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