Correlation Between PMPG Polskie and Asseco Business
Can any of the company-specific risk be diversified away by investing in both PMPG Polskie 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 PMPG Polskie and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PMPG Polskie Media and Asseco Business Solutions, you can compare the effects of market volatilities on PMPG Polskie 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 PMPG Polskie with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMPG Polskie and Asseco Business.
Diversification Opportunities for PMPG Polskie and Asseco Business
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PMPG and Asseco is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding PMPG Polskie Media 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 PMPG Polskie 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 PMPG Polskie Media 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 PMPG Polskie i.e., PMPG Polskie and Asseco Business go up and down completely randomly.
Pair Corralation between PMPG Polskie and Asseco Business
Assuming the 90 days trading horizon PMPG Polskie Media is expected to under-perform the Asseco Business. But the stock apears to be less risky and, when comparing its historical volatility, PMPG Polskie Media is 1.15 times less risky than Asseco Business. The stock trades about -0.08 of its potential returns per unit of risk. The Asseco Business Solutions is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,200 in Asseco Business Solutions on December 2, 2024 and sell it today you would earn a total of 1,680 from holding Asseco Business Solutions or generate 32.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PMPG Polskie Media vs. Asseco Business Solutions
Performance |
Timeline |
PMPG Polskie Media |
Asseco Business Solutions |
PMPG Polskie and Asseco Business Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PMPG Polskie and Asseco Business
The main advantage of trading using opposite PMPG Polskie and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMPG Polskie 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.PMPG Polskie vs. PZ Cormay SA | PMPG Polskie vs. Movie Games SA | PMPG Polskie vs. LSI Software SA | PMPG Polskie vs. Globe Trade Centre |
Asseco Business vs. Movie Games SA | Asseco Business vs. BNP Paribas Bank | Asseco Business vs. All In Games | Asseco Business vs. Investment Friends Capital |
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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