Correlation Between Dino Polska and Gobarto SA
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Gobarto SA 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 Gobarto SA 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 Gobarto SA, you can compare the effects of market volatilities on Dino Polska and Gobarto SA 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 Gobarto SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Gobarto SA.
Diversification Opportunities for Dino Polska and Gobarto SA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dino and Gobarto is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Gobarto SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gobarto 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 Gobarto SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gobarto SA has no effect on the direction of Dino Polska i.e., Dino Polska and Gobarto SA go up and down completely randomly.
Pair Corralation between Dino Polska and Gobarto SA
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 1.05 times more return on investment than Gobarto SA. However, Dino Polska is 1.05 times more volatile than Gobarto SA. It trades about 0.26 of its potential returns per unit of risk. Gobarto SA is currently generating about -0.04 per unit of risk. If you would invest 33,270 in Dino Polska SA on August 29, 2024 and sell it today you would earn a total of 6,440 from holding Dino Polska SA or generate 19.36% 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. Gobarto SA
Performance |
| Timeline |
| Dino Polska SA |
| Gobarto SA |
Dino Polska and Gobarto SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and Gobarto SA
The main advantage of trading using opposite Dino Polska and Gobarto SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Gobarto SA 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 Gobarto SA will offset losses from the drop in Gobarto SA's 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 |
| Gobarto SA vs. Banco Santander SA | Gobarto SA vs. UniCredit SpA | Gobarto SA vs. CEZ as | Gobarto SA 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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