Correlation Between ULMA Construccion and Asseco Business
Can any of the company-specific risk be diversified away by investing in both ULMA Construccion 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 ULMA Construccion and Asseco Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULMA Construccion Polska and Asseco Business Solutions, you can compare the effects of market volatilities on ULMA Construccion 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 ULMA Construccion with a short position of Asseco Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULMA Construccion and Asseco Business.
Diversification Opportunities for ULMA Construccion and Asseco Business
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ULMA and Asseco is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ULMA Construccion Polska 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 ULMA Construccion 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 ULMA Construccion Polska 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 ULMA Construccion i.e., ULMA Construccion and Asseco Business go up and down completely randomly.
Pair Corralation between ULMA Construccion and Asseco Business
Assuming the 90 days trading horizon ULMA Construccion Polska is expected to under-perform the Asseco Business. In addition to that, ULMA Construccion is 1.16 times more volatile than Asseco Business Solutions. It trades about -0.07 of its total potential returns per unit of risk. Asseco Business Solutions is currently generating about 0.23 per unit of volatility. If you would invest 5,240 in Asseco Business Solutions on December 3, 2024 and sell it today you would earn a total of 1,600 from holding Asseco Business Solutions or generate 30.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.33% |
Values | Daily Returns |
ULMA Construccion Polska vs. Asseco Business Solutions
Performance |
Timeline |
ULMA Construccion Polska |
Asseco Business Solutions |
ULMA Construccion and Asseco Business Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ULMA Construccion and Asseco Business
The main advantage of trading using opposite ULMA Construccion and Asseco Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULMA Construccion 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.ULMA Construccion vs. Examobile SA | ULMA Construccion vs. True Games Syndicate | ULMA Construccion vs. All In Games | ULMA Construccion vs. TEN SQUARE GAMES |
Asseco Business vs. TEN SQUARE GAMES | Asseco Business vs. Skyline Investment SA | Asseco Business vs. Enter Air SA | Asseco Business vs. True Games Syndicate |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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