Correlation Between SOFTWARE MANSION and Apator SA
Can any of the company-specific risk be diversified away by investing in both SOFTWARE MANSION and Apator 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 Apator 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 Apator SA, you can compare the effects of market volatilities on SOFTWARE MANSION and Apator 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 Apator SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFTWARE MANSION and Apator SA.
Diversification Opportunities for SOFTWARE MANSION and Apator SA
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SOFTWARE and Apator is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding SOFTWARE MANSION SPOLKA and Apator SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apator 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 Apator SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apator SA has no effect on the direction of SOFTWARE MANSION i.e., SOFTWARE MANSION and Apator SA go up and down completely randomly.
Pair Corralation between SOFTWARE MANSION and Apator SA
Assuming the 90 days trading horizon SOFTWARE MANSION SPOLKA is expected to under-perform the Apator SA. But the stock apears to be less risky and, when comparing its historical volatility, SOFTWARE MANSION SPOLKA is 1.72 times less risky than Apator SA. The stock trades about 0.0 of its potential returns per unit of risk. The Apator SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,670 in Apator SA on October 20, 2024 and sell it today you would earn a total of 10.00 from holding Apator SA or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
SOFTWARE MANSION SPOLKA vs. Apator SA
Performance |
| Timeline |
| SOFTWARE MANSION SPOLKA |
| Apator SA |
SOFTWARE MANSION and Apator SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFTWARE MANSION and Apator SA
The main advantage of trading using opposite SOFTWARE MANSION and Apator SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFTWARE MANSION position performs unexpectedly, Apator 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 Apator SA will offset losses from the drop in Apator SA's long position.| SOFTWARE MANSION vs. Noble Financials SA | SOFTWARE MANSION vs. Centrum Finansowe Banku | SOFTWARE MANSION vs. BNP Paribas Bank | SOFTWARE MANSION vs. X Trade Brokers |
| Apator SA vs. Asseco South Eastern | Apator SA vs. Vercom SA | Apator SA vs. CFI Holding SA | Apator SA vs. Gobarto 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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