Correlation Between SOFTWARE MANSION and Asseco South
Can any of the company-specific risk be diversified away by investing in both SOFTWARE MANSION 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 SOFTWARE MANSION and Asseco South 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 Asseco South Eastern, you can compare the effects of market volatilities on SOFTWARE MANSION 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 SOFTWARE MANSION with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFTWARE MANSION and Asseco South.
Diversification Opportunities for SOFTWARE MANSION and Asseco South
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SOFTWARE and Asseco is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SOFTWARE MANSION SPOLKA 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 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 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 SOFTWARE MANSION i.e., SOFTWARE MANSION and Asseco South go up and down completely randomly.
Pair Corralation between SOFTWARE MANSION and Asseco South
Assuming the 90 days trading horizon SOFTWARE MANSION is expected to generate 1.57 times less return on investment than Asseco South. In addition to that, SOFTWARE MANSION is 1.61 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 0.15 per unit of volatility. If you would invest 4,900 in Asseco South Eastern on November 28, 2024 and sell it today you would earn a total of 280.00 from holding Asseco South Eastern or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOFTWARE MANSION SPOLKA vs. Asseco South Eastern
Performance |
| Timeline |
| SOFTWARE MANSION SPOLKA |
| Asseco South Eastern |
SOFTWARE MANSION and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFTWARE MANSION and Asseco South
The main advantage of trading using opposite SOFTWARE MANSION and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFTWARE MANSION 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.| SOFTWARE MANSION vs. Immobile | SOFTWARE MANSION vs. Varsav Game Studios | SOFTWARE MANSION vs. CI Games SA | SOFTWARE MANSION vs. All In Games |
| Asseco South vs. SOFTWARE MANSION SPOLKA | Asseco South vs. Gaming Factory SA | Asseco South vs. TEN SQUARE GAMES | Asseco South vs. Igoria Trade 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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