Correlation Between Centrum Finansowe and Asseco South
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe 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 Centrum Finansowe and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centrum Finansowe Banku and Asseco South Eastern, you can compare the effects of market volatilities on Centrum Finansowe 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 Centrum Finansowe with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and Asseco South.
Diversification Opportunities for Centrum Finansowe and Asseco South
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Centrum and Asseco is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku 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 Centrum Finansowe 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 Centrum Finansowe Banku 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 Centrum Finansowe i.e., Centrum Finansowe and Asseco South go up and down completely randomly.
Pair Corralation between Centrum Finansowe and Asseco South
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to under-perform the Asseco South. In addition to that, Centrum Finansowe is 2.2 times more volatile than Asseco South Eastern. It trades about -0.05 of its total potential returns per unit of risk. Asseco South Eastern is currently generating about 0.17 per unit of volatility. If you would invest 4,790 in Asseco South Eastern on November 23, 2024 and sell it today you would earn a total of 510.00 from holding Asseco South Eastern or generate 10.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
Centrum Finansowe Banku vs. Asseco South Eastern
Performance |
Timeline |
Centrum Finansowe Banku |
Asseco South Eastern |
Centrum Finansowe and Asseco South Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Centrum Finansowe and Asseco South
The main advantage of trading using opposite Centrum Finansowe and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe 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.Centrum Finansowe vs. CI Games SA | ||
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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