Correlation Between Centrum Finansowe and Asseco South

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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

CentrumAssecoDiversified AwayCentrumAssecoDiversified Away100%
-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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.31%
ValuesDaily Returns

Centrum Finansowe Banku  vs.  Asseco South Eastern

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505
JavaScript chart by amCharts 3.21.15CFS ASE
       Timeline  
Centrum Finansowe Banku 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Centrum Finansowe Banku has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb55.25.45.65.86
Asseco South Eastern 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Asseco South Eastern are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Asseco South may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb464748495051525354

Centrum Finansowe and Asseco South Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.18-3.13-2.08-1.030.01.02.013.034.04 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15CFS ASE
       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.
The idea behind Centrum Finansowe Banku and Asseco South Eastern pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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