Correlation Between Intersport Polska and Asseco South
Can any of the company-specific risk be diversified away by investing in both Intersport Polska 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 Intersport Polska and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intersport Polska SA and Asseco South Eastern, you can compare the effects of market volatilities on Intersport Polska 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 Intersport Polska with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Asseco South.
Diversification Opportunities for Intersport Polska and Asseco South
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intersport and Asseco is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska 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 Intersport Polska 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 Intersport Polska 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 Intersport Polska i.e., Intersport Polska and Asseco South go up and down completely randomly.
Pair Corralation between Intersport Polska and Asseco South
Assuming the 90 days trading horizon Intersport Polska SA is expected to generate 3.33 times more return on investment than Asseco South. However, Intersport Polska is 3.33 times more volatile than Asseco South Eastern. It trades about 0.02 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 81.00 in Intersport Polska SA on August 31, 2024 and sell it today you would lose (8.00) from holding Intersport Polska SA or give up 9.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intersport Polska SA vs. Asseco South Eastern
Performance |
| Timeline |
| Intersport Polska |
| Asseco South Eastern |
Intersport Polska and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intersport Polska and Asseco South
The main advantage of trading using opposite Intersport Polska and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska 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.| Intersport Polska vs. Asseco Business Solutions | Intersport Polska vs. Detalion Games SA | Intersport Polska vs. Asseco South Eastern | Intersport Polska vs. CFI Holding SA |
| Asseco South vs. PMPG Polskie Media | Asseco South vs. Tower Investments SA | Asseco South vs. Gamedust 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |