Correlation Between Dino Polska and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Kogeneracja 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 Kogeneracja 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 Kogeneracja SA, you can compare the effects of market volatilities on Dino Polska and Kogeneracja 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 Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Kogeneracja.
Diversification Opportunities for Dino Polska and Kogeneracja
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dino and Kogeneracja is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja 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 Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of Dino Polska i.e., Dino Polska and Kogeneracja go up and down completely randomly.
Pair Corralation between Dino Polska and Kogeneracja
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 0.72 times more return on investment than Kogeneracja. However, Dino Polska SA is 1.39 times less risky than Kogeneracja. It trades about 0.18 of its potential returns per unit of risk. Kogeneracja SA is currently generating about 0.05 per unit of risk. If you would invest 34,390 in Dino Polska SA on September 3, 2024 and sell it today you would earn a total of 4,200 from holding Dino Polska SA or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dino Polska SA vs. Kogeneracja SA
Performance |
| Timeline |
| Dino Polska SA |
| Kogeneracja SA |
Dino Polska and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and Kogeneracja
The main advantage of trading using opposite Dino Polska and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| Dino Polska vs. Ultimate Games SA | Dino Polska vs. Inter Cars SA | Dino Polska vs. Gamedust SA | Dino Polska vs. Noble Financials SA |
| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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