Correlation Between Stalprodukt and Asseco South
Can any of the company-specific risk be diversified away by investing in both Stalprodukt 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 Stalprodukt and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stalprodukt SA and Asseco South Eastern, you can compare the effects of market volatilities on Stalprodukt 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 Stalprodukt with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stalprodukt and Asseco South.
Diversification Opportunities for Stalprodukt and Asseco South
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stalprodukt and Asseco is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Stalprodukt 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 Stalprodukt 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 Stalprodukt 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 Stalprodukt i.e., Stalprodukt and Asseco South go up and down completely randomly.
Pair Corralation between Stalprodukt and Asseco South
Assuming the 90 days trading horizon Stalprodukt SA is expected to under-perform the Asseco South. But the stock apears to be less risky and, when comparing its historical volatility, Stalprodukt SA is 1.23 times less risky than Asseco South. The stock trades about -0.36 of its potential returns per unit of risk. The Asseco South Eastern is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 5,020 in Asseco South Eastern on September 5, 2024 and sell it today you would lose (170.00) from holding Asseco South Eastern or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stalprodukt SA vs. Asseco South Eastern
Performance |
| Timeline |
| Stalprodukt SA |
| Asseco South Eastern |
Stalprodukt and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stalprodukt and Asseco South
The main advantage of trading using opposite Stalprodukt and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stalprodukt 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.| Stalprodukt vs. Asseco South Eastern | Stalprodukt vs. Vercom SA | Stalprodukt vs. CFI Holding SA | Stalprodukt vs. Gobarto SA |
| Asseco South vs. Banco Santander SA | Asseco South vs. UniCredit SpA | Asseco South vs. CEZ as | Asseco South vs. Polski Koncern Naftowy |
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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