Correlation Between Road Studio and Asseco South
Can any of the company-specific risk be diversified away by investing in both Road Studio 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 Road Studio and Asseco South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Road Studio SA and Asseco South Eastern, you can compare the effects of market volatilities on Road Studio 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 Road Studio with a short position of Asseco South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Studio and Asseco South.
Diversification Opportunities for Road Studio and Asseco South
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Road and Asseco is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Road Studio 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 Road Studio 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 Road Studio 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 Road Studio i.e., Road Studio and Asseco South go up and down completely randomly.
Pair Corralation between Road Studio and Asseco South
Assuming the 90 days trading horizon Road Studio SA is expected to generate 4.61 times more return on investment than Asseco South. However, Road Studio is 4.61 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 0.17 per unit of risk. If you would invest 518.00 in Road Studio SA on November 23, 2024 and sell it today you would earn a total of 150.00 from holding Road Studio SA or generate 28.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 93.22% |
Values | Daily Returns |
Road Studio SA vs. Asseco South Eastern
Performance |
Timeline |
Road Studio SA |
Asseco South Eastern |
Road Studio and Asseco South Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Road Studio and Asseco South
The main advantage of trading using opposite Road Studio and Asseco South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Studio 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.Road Studio vs. mBank 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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