Correlation Between Asseco Business and MCI Management
Can any of the company-specific risk be diversified away by investing in both Asseco Business and MCI Management 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 Asseco Business and MCI Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asseco Business Solutions and MCI Management SA, you can compare the effects of market volatilities on Asseco Business and MCI Management 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 Asseco Business with a short position of MCI Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco Business and MCI Management.
Diversification Opportunities for Asseco Business and MCI Management
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asseco and MCI is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Asseco Business Solutions and MCI Management SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCI Management SA and Asseco Business 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 Asseco Business Solutions are associated (or correlated) with MCI Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCI Management SA has no effect on the direction of Asseco Business i.e., Asseco Business and MCI Management go up and down completely randomly.
Pair Corralation between Asseco Business and MCI Management
Assuming the 90 days trading horizon Asseco Business is expected to generate 1.08 times less return on investment than MCI Management. But when comparing it to its historical volatility, Asseco Business Solutions is 1.17 times less risky than MCI Management. It trades about 0.07 of its potential returns per unit of risk. MCI Management SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,910 in MCI Management SA on September 14, 2024 and sell it today you would earn a total of 630.00 from holding MCI Management SA or generate 32.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Asseco Business Solutions vs. MCI Management SA
Performance |
Timeline |
Asseco Business Solutions |
MCI Management SA |
Asseco Business and MCI Management Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asseco Business and MCI Management
The main advantage of trading using opposite Asseco Business and MCI Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco Business position performs unexpectedly, MCI Management 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 MCI Management will offset losses from the drop in MCI Management's long position.Asseco Business vs. Asseco Poland SA | Asseco Business vs. LSI Software SA | Asseco Business vs. Quantum Software 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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