Correlation Between CFI Holding and Dino Polska
Can any of the company-specific risk be diversified away by investing in both CFI Holding 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 CFI Holding and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CFI Holding SA and Dino Polska SA, you can compare the effects of market volatilities on CFI Holding 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 CFI Holding with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and Dino Polska.
Diversification Opportunities for CFI Holding and Dino Polska
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CFI and Dino is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding 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 CFI Holding 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 CFI Holding 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 CFI Holding i.e., CFI Holding and Dino Polska go up and down completely randomly.
Pair Corralation between CFI Holding and Dino Polska
Assuming the 90 days trading horizon CFI Holding SA is expected to under-perform the Dino Polska. In addition to that, CFI Holding is 1.83 times more volatile than Dino Polska SA. It trades about 0.0 of its total potential returns per unit of risk. Dino Polska SA is currently generating about 0.24 per unit of volatility. If you would invest 33,270 in Dino Polska SA on August 29, 2024 and sell it today you would earn a total of 6,030 from holding Dino Polska SA or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CFI Holding SA vs. Dino Polska SA
Performance |
| Timeline |
| CFI Holding SA |
| Dino Polska SA |
CFI Holding and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and Dino Polska
The main advantage of trading using opposite CFI Holding and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding 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.| CFI Holding vs. Tower Investments SA | CFI Holding vs. Centrum Finansowe Banku | CFI Holding vs. Alior Bank SA | CFI Holding vs. Santander Bank Polska |
| Dino Polska vs. Asseco Business Solutions | Dino Polska vs. Detalion Games SA | Dino Polska vs. CFI Holding SA | Dino Polska vs. HM Inwest 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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