Correlation Between VR Factory and Asseco Business
Can any of the company-specific risk be diversified away by investing in both VR Factory and Asseco Business 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 VR Factory and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VR Factory Games and Asseco Business Solutions, you can compare the effects of market volatilities on VR Factory and Asseco Business 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 VR Factory with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of VR Factory and Asseco Business.
Diversification Opportunities for VR Factory and Asseco Business
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VRF and Asseco is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding VR Factory Games and Asseco Business Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asseco Business Solutions and VR Factory 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 VR Factory Games are associated (or correlated) with Asseco Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asseco Business Solutions has no effect on the direction of VR Factory i.e., VR Factory and Asseco Business go up and down completely randomly.
Pair Corralation between VR Factory and Asseco Business
Assuming the 90 days trading horizon VR Factory Games is expected to under-perform the Asseco Business. In addition to that, VR Factory is 3.34 times more volatile than Asseco Business Solutions. It trades about -0.05 of its total potential returns per unit of risk. Asseco Business Solutions is currently generating about -0.13 per unit of volatility. If you would invest 5,860 in Asseco Business Solutions on August 30, 2024 and sell it today you would lose (540.00) from holding Asseco Business Solutions or give up 9.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
VR Factory Games vs. Asseco Business Solutions
Performance |
| Timeline |
| VR Factory Games |
| Asseco Business Solutions |
VR Factory and Asseco Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VR Factory and Asseco Business
The main advantage of trading using opposite VR Factory and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VR Factory position performs unexpectedly, Asseco Business 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 Business will offset losses from the drop in Asseco Business' long position.| VR Factory vs. NGG | VR Factory vs. Asseco Business Solutions | VR Factory vs. Detalion Games SA | VR Factory vs. CFI Holding SA |
| Asseco Business vs. BNP Paribas Bank | Asseco Business vs. PZ Cormay SA | Asseco Business vs. Immobile | Asseco Business vs. Alior Bank 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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