Correlation Between Dino Polska and CD PROJEKT
Can any of the company-specific risk be diversified away by investing in both Dino Polska and CD PROJEKT 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 CD PROJEKT 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 CD PROJEKT SA, you can compare the effects of market volatilities on Dino Polska and CD PROJEKT 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 CD PROJEKT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and CD PROJEKT.
Diversification Opportunities for Dino Polska and CD PROJEKT
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dino and CDR is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and CD PROJEKT SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CD PROJEKT 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 CD PROJEKT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CD PROJEKT SA has no effect on the direction of Dino Polska i.e., Dino Polska and CD PROJEKT go up and down completely randomly.
Pair Corralation between Dino Polska and CD PROJEKT
Assuming the 90 days trading horizon Dino Polska is expected to generate 2.73 times less return on investment than CD PROJEKT. But when comparing it to its historical volatility, Dino Polska SA is 1.11 times less risky than CD PROJEKT. It trades about 0.01 of its potential returns per unit of risk. CD PROJEKT SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 13,251 in CD PROJEKT SA on September 2, 2024 and sell it today you would earn a total of 3,469 from holding CD PROJEKT SA or generate 26.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dino Polska SA vs. CD PROJEKT SA
Performance |
| Timeline |
| Dino Polska SA |
| CD PROJEKT SA |
Dino Polska and CD PROJEKT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and CD PROJEKT
The main advantage of trading using opposite Dino Polska and CD PROJEKT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, CD PROJEKT 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 CD PROJEKT will offset losses from the drop in CD PROJEKT's long position.| Dino Polska vs. PLAYWAY SA | Dino Polska vs. Biztech Konsulting SA | Dino Polska vs. Gamedust SA | Dino Polska vs. TEN SQUARE GAMES |
| CD PROJEKT vs. LPP SA | CD PROJEKT vs. Stalprodukt SA | CD PROJEKT vs. mBank SA | CD PROJEKT vs. Santander Bank Polska |
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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