Correlation Between Dino Polska and Jastrzebska Spotka
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Jastrzebska Spotka 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 Jastrzebska Spotka 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 Jastrzebska Spotka Weglowa, you can compare the effects of market volatilities on Dino Polska and Jastrzebska Spotka 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 Jastrzebska Spotka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Jastrzebska Spotka.
Diversification Opportunities for Dino Polska and Jastrzebska Spotka
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dino and Jastrzebska is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Jastrzebska Spotka Weglowa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jastrzebska Spotka 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 Jastrzebska Spotka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jastrzebska Spotka has no effect on the direction of Dino Polska i.e., Dino Polska and Jastrzebska Spotka go up and down completely randomly.
Pair Corralation between Dino Polska and Jastrzebska Spotka
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 0.79 times more return on investment than Jastrzebska Spotka. However, Dino Polska SA is 1.27 times less risky than Jastrzebska Spotka. It trades about 0.27 of its potential returns per unit of risk. Jastrzebska Spotka Weglowa is currently generating about 0.17 per unit of risk. If you would invest 40,110 in Dino Polska SA on November 2, 2024 and sell it today you would earn a total of 4,490 from holding Dino Polska SA or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dino Polska SA vs. Jastrzebska Spotka Weglowa
Performance |
| Timeline |
| Dino Polska SA |
| Jastrzebska Spotka |
Dino Polska and Jastrzebska Spotka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and Jastrzebska Spotka
The main advantage of trading using opposite Dino Polska and Jastrzebska Spotka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Jastrzebska Spotka 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 Jastrzebska Spotka will offset losses from the drop in Jastrzebska Spotka's long position.| Dino Polska vs. Pyramid Games SA | Dino Polska vs. Echo Investment SA | Dino Polska vs. Enter Air SA | Dino Polska vs. Investment Friends Capital |
| Jastrzebska Spotka vs. Globe Trade Centre | Jastrzebska Spotka vs. PZ Cormay SA | Jastrzebska Spotka vs. Marie Brizard Wine | Jastrzebska Spotka vs. mBank 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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