Correlation Between SOFTWARE MANSION and AC SA
Can any of the company-specific risk be diversified away by investing in both SOFTWARE MANSION and AC SA 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 SOFTWARE MANSION and AC SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFTWARE MANSION SPOLKA and AC SA, you can compare the effects of market volatilities on SOFTWARE MANSION and AC SA 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 SOFTWARE MANSION with a short position of AC SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFTWARE MANSION and AC SA.
Diversification Opportunities for SOFTWARE MANSION and AC SA
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOFTWARE and ACG is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SOFTWARE MANSION SPOLKA and AC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC SA and SOFTWARE MANSION 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 SOFTWARE MANSION SPOLKA are associated (or correlated) with AC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC SA has no effect on the direction of SOFTWARE MANSION i.e., SOFTWARE MANSION and AC SA go up and down completely randomly.
Pair Corralation between SOFTWARE MANSION and AC SA
Assuming the 90 days trading horizon SOFTWARE MANSION SPOLKA is expected to under-perform the AC SA. In addition to that, SOFTWARE MANSION is 1.55 times more volatile than AC SA. It trades about -0.1 of its total potential returns per unit of risk. AC SA is currently generating about 0.15 per unit of volatility. If you would invest 2,750 in AC SA on September 13, 2024 and sell it today you would earn a total of 130.00 from holding AC SA or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
SOFTWARE MANSION SPOLKA vs. AC SA
Performance |
| Timeline |
| SOFTWARE MANSION SPOLKA |
| AC SA |
SOFTWARE MANSION and AC SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFTWARE MANSION and AC SA
The main advantage of trading using opposite SOFTWARE MANSION and AC SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFTWARE MANSION position performs unexpectedly, AC SA 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 AC SA will offset losses from the drop in AC SA's long position.| SOFTWARE MANSION vs. Play2Chill SA | SOFTWARE MANSION vs. Immobile | SOFTWARE MANSION vs. GreenX Metals | SOFTWARE MANSION vs. Gamedust SA |
| AC SA vs. ERG SA | AC SA vs. Asseco Business Solutions | AC SA vs. Detalion Games SA | AC SA vs. Kogeneracja 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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