Correlation Between Vercom SA and Asseco South
Can any of the company-specific risk be diversified away by investing in both Vercom SA 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 Vercom SA and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vercom SA and Asseco South Eastern, you can compare the effects of market volatilities on Vercom SA 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 Vercom SA with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vercom SA and Asseco South.
Diversification Opportunities for Vercom SA and Asseco South
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vercom and Asseco is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Vercom 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 Vercom SA 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 Vercom 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 Vercom SA i.e., Vercom SA and Asseco South go up and down completely randomly.
Pair Corralation between Vercom SA and Asseco South
Assuming the 90 days trading horizon Vercom SA is expected to generate 1.11 times more return on investment than Asseco South. However, Vercom SA is 1.11 times more volatile than Asseco South Eastern. It trades about -0.12 of its potential returns per unit of risk. Asseco South Eastern is currently generating about -0.14 per unit of risk. If you would invest 11,900 in Vercom SA on August 30, 2024 and sell it today you would lose (450.00) from holding Vercom SA or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vercom SA vs. Asseco South Eastern
Performance |
| Timeline |
| Vercom SA |
| Asseco South Eastern |
Vercom SA and Asseco South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vercom SA and Asseco South
The main advantage of trading using opposite Vercom SA and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vercom SA 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.| Vercom SA vs. Banco Santander SA | Vercom SA vs. UniCredit SpA | Vercom SA vs. CEZ as | Vercom SA vs. Polski Koncern Naftowy |
| Asseco South vs. Bank Millennium SA | Asseco South vs. Quantum Software SA | Asseco South vs. Santander Bank Polska | Asseco South vs. Echo Investment 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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