Correlation Between Dino Polska and GI Group
Can any of the company-specific risk be diversified away by investing in both Dino Polska and GI Group 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 GI Group 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 GI Group Poland, you can compare the effects of market volatilities on Dino Polska and GI Group 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 GI Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and GI Group.
Diversification Opportunities for Dino Polska and GI Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dino and GIG is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and GI Group Poland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GI Group Poland 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 GI Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GI Group Poland has no effect on the direction of Dino Polska i.e., Dino Polska and GI Group go up and down completely randomly.
Pair Corralation between Dino Polska and GI Group
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 0.98 times more return on investment than GI Group. However, Dino Polska SA is 1.02 times less risky than GI Group. It trades about 0.02 of its potential returns per unit of risk. GI Group Poland is currently generating about 0.01 per unit of risk. If you would invest 36,530 in Dino Polska SA on August 31, 2024 and sell it today you would earn a total of 2,060 from holding Dino Polska SA or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Dino Polska SA vs. GI Group Poland
Performance |
| Timeline |
| Dino Polska SA |
| GI Group Poland |
Dino Polska and GI Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and GI Group
The main advantage of trading using opposite Dino Polska and GI Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, GI Group 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 GI Group will offset losses from the drop in GI Group's long position.| Dino Polska vs. Asseco Business Solutions | Dino Polska vs. Detalion Games SA | Dino Polska vs. Asseco South Eastern | Dino Polska vs. CFI Holding SA |
| GI Group vs. Movie Games SA | GI Group vs. Gamedust SA | GI Group vs. mBank SA | GI Group vs. Biztech Konsulting 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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