Correlation Between Powszechny Zaklad and Asseco Business
Can any of the company-specific risk be diversified away by investing in both Powszechny Zaklad 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 Powszechny Zaklad and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Powszechny Zaklad Ubezpieczen and Asseco Business Solutions, you can compare the effects of market volatilities on Powszechny Zaklad 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 Powszechny Zaklad with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powszechny Zaklad and Asseco Business.
Diversification Opportunities for Powszechny Zaklad and Asseco Business
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Powszechny and Asseco is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Powszechny Zaklad Ubezpieczen 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 Powszechny Zaklad 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 Powszechny Zaklad Ubezpieczen 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 Powszechny Zaklad i.e., Powszechny Zaklad and Asseco Business go up and down completely randomly.
Pair Corralation between Powszechny Zaklad and Asseco Business
Assuming the 90 days trading horizon Powszechny Zaklad Ubezpieczen is expected to generate 0.95 times more return on investment than Asseco Business. However, Powszechny Zaklad Ubezpieczen is 1.05 times less risky than Asseco Business. It trades about 0.3 of its potential returns per unit of risk. Asseco Business Solutions is currently generating about 0.02 per unit of risk. If you would invest 4,087 in Powszechny Zaklad Ubezpieczen on September 13, 2024 and sell it today you would earn a total of 539.00 from holding Powszechny Zaklad Ubezpieczen or generate 13.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Powszechny Zaklad Ubezpieczen vs. Asseco Business Solutions
Performance |
| Timeline |
| Powszechny Zaklad |
| Asseco Business Solutions |
Powszechny Zaklad and Asseco Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powszechny Zaklad and Asseco Business
The main advantage of trading using opposite Powszechny Zaklad and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powszechny Zaklad 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.| Powszechny Zaklad vs. Asseco Business Solutions | Powszechny Zaklad vs. Detalion Games SA | Powszechny Zaklad vs. Asseco South Eastern | Powszechny Zaklad vs. HM Inwest SA |
| Asseco Business vs. Inter Cars SA | Asseco Business vs. Skyline Investment SA | Asseco Business vs. GreenX Metals | Asseco Business vs. PMPG Polskie Media |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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