Correlation Between Dino Polska and Bank Polska
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Bank Polska 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 Bank Polska 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 Bank Polska Kasa, you can compare the effects of market volatilities on Dino Polska and Bank Polska 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 Bank Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Bank Polska.
Diversification Opportunities for Dino Polska and Bank Polska
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dino and Bank is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Bank Polska Kasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Polska Kasa 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 Bank Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Polska Kasa has no effect on the direction of Dino Polska i.e., Dino Polska and Bank Polska go up and down completely randomly.
Pair Corralation between Dino Polska and Bank Polska
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 1.19 times more return on investment than Bank Polska. However, Dino Polska is 1.19 times more volatile than Bank Polska Kasa. It trades about 0.21 of its potential returns per unit of risk. Bank Polska Kasa is currently generating about 0.21 per unit of risk. If you would invest 39,410 in Dino Polska SA on November 3, 2024 and sell it today you would earn a total of 5,620 from holding Dino Polska SA or generate 14.26% 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. Bank Polska Kasa
Performance |
| Timeline |
| Dino Polska SA |
| Bank Polska Kasa |
Dino Polska and Bank Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and Bank Polska
The main advantage of trading using opposite Dino Polska and Bank Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Bank Polska 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 Bank Polska will offset losses from the drop in Bank Polska's long position.| Dino Polska vs. Skyline Investment SA | Dino Polska vs. GreenX Metals | Dino Polska vs. MCI Management SA | Dino Polska vs. Gremi Media SA |
| Bank Polska vs. Noble Financials SA | Bank Polska vs. Pyramid Games SA | Bank Polska vs. Vivid Games SA | Bank Polska vs. Creativeforge Games 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |