Correlation Between MLP Group and Asseco Business
Can any of the company-specific risk be diversified away by investing in both MLP Group 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 MLP Group and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MLP Group SA and Asseco Business Solutions, you can compare the effects of market volatilities on MLP Group 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 MLP Group with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of MLP Group and Asseco Business.
Diversification Opportunities for MLP Group and Asseco Business
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MLP and Asseco is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding MLP Group 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 MLP Group 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 MLP Group 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 MLP Group i.e., MLP Group and Asseco Business go up and down completely randomly.
Pair Corralation between MLP Group and Asseco Business
Assuming the 90 days trading horizon MLP Group is expected to generate 1.17 times less return on investment than Asseco Business. In addition to that, MLP Group is 1.56 times more volatile than Asseco Business Solutions. It trades about 0.17 of its total potential returns per unit of risk. Asseco Business Solutions is currently generating about 0.31 per unit of volatility. If you would invest 6,080 in Asseco Business Solutions on November 28, 2024 and sell it today you would earn a total of 760.00 from holding Asseco Business Solutions or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MLP Group SA vs. Asseco Business Solutions
Performance |
| Timeline |
| MLP Group SA |
| Asseco Business Solutions |
MLP Group and Asseco Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MLP Group and Asseco Business
The main advantage of trading using opposite MLP Group and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MLP Group 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.| MLP Group vs. Skyline Investment SA | MLP Group vs. Investment Friends Capital | MLP Group vs. GreenX Metals | MLP Group vs. Echo Investment SA |
| Asseco Business vs. LSI Software SA | Asseco Business vs. mBank SA | Asseco Business vs. Alior Bank SA | Asseco Business vs. Gaming Factory 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 Stocks Directory module to find actively traded stocks across global markets.
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