Correlation Between Dino Polska and CEZ As
Can any of the company-specific risk be diversified away by investing in both Dino Polska and CEZ As 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 CEZ As 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 CEZ as, you can compare the effects of market volatilities on Dino Polska and CEZ As 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 CEZ As. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and CEZ As.
Diversification Opportunities for Dino Polska and CEZ As
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dino and CEZ is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and CEZ as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEZ as 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 CEZ As. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEZ as has no effect on the direction of Dino Polska i.e., Dino Polska and CEZ As go up and down completely randomly.
Pair Corralation between Dino Polska and CEZ As
Assuming the 90 days trading horizon Dino Polska SA is expected to under-perform the CEZ As. In addition to that, Dino Polska is 1.45 times more volatile than CEZ as. It trades about -0.01 of its total potential returns per unit of risk. CEZ as is currently generating about 0.01 per unit of volatility. If you would invest 16,329 in CEZ as on August 28, 2024 and sell it today you would earn a total of 301.00 from holding CEZ as or generate 1.84% 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. CEZ as
Performance |
| Timeline |
| Dino Polska SA |
| CEZ as |
Dino Polska and CEZ As Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and CEZ As
The main advantage of trading using opposite Dino Polska and CEZ As positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, CEZ As 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 CEZ As will offset losses from the drop in CEZ As' long position.| Dino Polska vs. SOFTWARE MANSION SPOLKA | Dino Polska vs. Ice Code Games | Dino Polska vs. Enter Air SA | Dino Polska vs. GreenX Metals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |