Correlation Between Dino Polska and Atlantis
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Atlantis 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 Atlantis 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 Atlantis SA, you can compare the effects of market volatilities on Dino Polska and Atlantis 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 Atlantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Atlantis.
Diversification Opportunities for Dino Polska and Atlantis
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dino and Atlantis is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Atlantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis 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 Atlantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis SA has no effect on the direction of Dino Polska i.e., Dino Polska and Atlantis go up and down completely randomly.
Pair Corralation between Dino Polska and Atlantis
Assuming the 90 days trading horizon Dino Polska is expected to generate 26.62 times less return on investment than Atlantis. But when comparing it to its historical volatility, Dino Polska SA is 3.71 times less risky than Atlantis. It trades about 0.05 of its potential returns per unit of risk. Atlantis SA is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 8.90 in Atlantis SA on October 9, 2024 and sell it today you would earn a total of 8.10 from holding Atlantis SA or generate 91.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dino Polska SA vs. Atlantis SA
Performance |
| Timeline |
| Dino Polska SA |
| Atlantis SA |
Dino Polska and Atlantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and Atlantis
The main advantage of trading using opposite Dino Polska and Atlantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Atlantis 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 Atlantis will offset losses from the drop in Atlantis' long position.| Dino Polska vs. SOFTWARE MANSION SPOLKA | Dino Polska vs. LSI Software SA | Dino Polska vs. Medicofarma Biotech SA | Dino Polska vs. Pyramid Games SA |
| Atlantis vs. Banco Santander SA | Atlantis vs. UniCredit SpA | Atlantis vs. CEZ as | Atlantis 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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