Correlation Between APS Energia and Dino Polska
Can any of the company-specific risk be diversified away by investing in both APS Energia and Dino Polska 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 APS Energia and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APS Energia SA and Dino Polska SA, you can compare the effects of market volatilities on APS Energia and Dino Polska 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 APS Energia with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of APS Energia and Dino Polska.
Diversification Opportunities for APS Energia and Dino Polska
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APS and Dino is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding APS Energia SA and Dino Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dino Polska SA and APS Energia 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 APS Energia SA are associated (or correlated) with Dino Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dino Polska SA has no effect on the direction of APS Energia i.e., APS Energia and Dino Polska go up and down completely randomly.
Pair Corralation between APS Energia and Dino Polska
Assuming the 90 days trading horizon APS Energia SA is expected to generate 1.21 times more return on investment than Dino Polska. However, APS Energia is 1.21 times more volatile than Dino Polska SA. It trades about 0.02 of its potential returns per unit of risk. Dino Polska SA is currently generating about 0.0 per unit of risk. If you would invest 264.00 in APS Energia SA on September 1, 2024 and sell it today you would earn a total of 2.00 from holding APS Energia SA or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
APS Energia SA vs. Dino Polska SA
Performance |
| Timeline |
| APS Energia SA |
| Dino Polska SA |
APS Energia and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APS Energia and Dino Polska
The main advantage of trading using opposite APS Energia and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APS Energia position performs unexpectedly, Dino Polska 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 Dino Polska will offset losses from the drop in Dino Polska's long position.| APS Energia vs. LSI Software SA | APS Energia vs. Cloud Technologies SA | APS Energia vs. Quantum Software SA | APS Energia vs. Mlk Foods Public |
| Dino Polska vs. GreenX Metals | Dino Polska vs. PMPG Polskie Media | Dino Polska vs. Intersport Polska SA | Dino Polska vs. Road Studio SA |
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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