Correlation Between Dino Polska and Aplisens
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Aplisens 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 Dino Polska and Aplisens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dino Polska SA and Aplisens SA, you can compare the effects of market volatilities on Dino Polska and Aplisens 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 Dino Polska with a short position of Aplisens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Aplisens.
Diversification Opportunities for Dino Polska and Aplisens
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dino and Aplisens is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Aplisens SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aplisens SA and Dino Polska 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 Dino Polska SA are associated (or correlated) with Aplisens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aplisens SA has no effect on the direction of Dino Polska i.e., Dino Polska and Aplisens go up and down completely randomly.
Pair Corralation between Dino Polska and Aplisens
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 1.41 times more return on investment than Aplisens. However, Dino Polska is 1.41 times more volatile than Aplisens SA. It trades about 0.0 of its potential returns per unit of risk. Aplisens SA is currently generating about -0.04 per unit of risk. If you would invest 39,660 in Dino Polska SA on September 1, 2024 and sell it today you would lose (1,070) from holding Dino Polska SA or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Dino Polska SA vs. Aplisens SA
Performance |
| Timeline |
| Dino Polska SA |
| Aplisens SA |
Dino Polska and Aplisens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and Aplisens
The main advantage of trading using opposite Dino Polska and Aplisens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Aplisens 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 Aplisens will offset losses from the drop in Aplisens' long position.| Dino Polska vs. GreenX Metals | Dino Polska vs. PMPG Polskie Media | Dino Polska vs. Intersport Polska SA | Dino Polska vs. Road Studio SA |
| Aplisens vs. Banco Santander SA | Aplisens vs. UniCredit SpA | Aplisens vs. CEZ as | Aplisens vs. Polski Koncern Naftowy |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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