Correlation Between Saule Technologies and Asseco South
Can any of the company-specific risk be diversified away by investing in both Saule Technologies 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 Saule Technologies and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and Asseco South Eastern, you can compare the effects of market volatilities on Saule Technologies 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 Saule Technologies with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Asseco South.
Diversification Opportunities for Saule Technologies and Asseco South
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Saule and Asseco is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies 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 Saule Technologies 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 Saule Technologies 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 Saule Technologies i.e., Saule Technologies and Asseco South go up and down completely randomly.
Pair Corralation between Saule Technologies and Asseco South
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the Asseco South. In addition to that, Saule Technologies is 2.04 times more volatile than Asseco South Eastern. It trades about -0.06 of its total potential returns per unit of risk. Asseco South Eastern is currently generating about 0.03 per unit of volatility. If you would invest 4,216 in Asseco South Eastern on September 4, 2024 and sell it today you would earn a total of 634.00 from holding Asseco South Eastern or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saule Technologies SA vs. Asseco South Eastern
Performance |
| Timeline |
| Saule Technologies |
| Asseco South Eastern |
Saule Technologies and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and Asseco South
The main advantage of trading using opposite Saule Technologies and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies 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.| Saule Technologies vs. Clean Carbon Energy | Saule Technologies vs. ADX | Saule Technologies vs. Agroliga Group PLC | Saule Technologies vs. Vee SA |
| Asseco South vs. New Tech Venture | Asseco South vs. Kool2play SA | Asseco South vs. Cloud Technologies SA | Asseco South vs. Saule Technologies 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |