Correlation Between Asseco South and Altustfi

Can any of the company-specific risk be diversified away by investing in both Asseco South and Altustfi 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 South and Altustfi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asseco South Eastern and Altustfi, you can compare the effects of market volatilities on Asseco South and Altustfi 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 South with a short position of Altustfi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asseco South and Altustfi.

Diversification Opportunities for Asseco South and Altustfi

0.16

Correlation Coefficient

Asseco South  Altustfi

Average diversification

The 3 months correlation between Asseco and Altustfi is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Asseco South Eastern and Altustfi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altustfi and Asseco South 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 South Eastern are associated (or correlated) with Altustfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altustfi has no effect on the direction of Asseco South i.e., Asseco South and Altustfi go up and down completely randomly.

Pair Corralation between Asseco South and Altustfi

Assuming the 90 days trading horizon Asseco South Eastern is expected to under-perform the Altustfi. But the stock apears to be less risky and, when comparing its historical volatility, Asseco South Eastern is 2.48 times less risky than Altustfi. The stock trades about -0.1 of its potential returns per unit of risk. The Altustfi is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  234.00  in Altustfi on September 2, 2024 and sell it today you would lose (3.00) from holding Altustfi or give up 1.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Asseco South Eastern  vs.  Altustfi

Asseco South Eastern

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asseco South Eastern has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Asseco South is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Altustfi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altustfi has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Asseco South and Altustfi

The main advantage of trading using opposite Asseco South and Altustfi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asseco South position performs unexpectedly, Altustfi 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 Altustfi will offset losses from the drop in Altustfi's long position.

The idea behind Asseco South Eastern and Altustfi 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.