Correlation Between Dino Polska and PKP Cargo
Can any of the company-specific risk be diversified away by investing in both Dino Polska and PKP Cargo 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 PKP Cargo 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 PKP Cargo SA, you can compare the effects of market volatilities on Dino Polska and PKP Cargo 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 PKP Cargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and PKP Cargo.
Diversification Opportunities for Dino Polska and PKP Cargo
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dino and PKP is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and PKP Cargo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKP Cargo 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 PKP Cargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKP Cargo SA has no effect on the direction of Dino Polska i.e., Dino Polska and PKP Cargo go up and down completely randomly.
Pair Corralation between Dino Polska and PKP Cargo
Assuming the 90 days trading horizon Dino Polska is expected to generate 2.18 times less return on investment than PKP Cargo. But when comparing it to its historical volatility, Dino Polska SA is 1.43 times less risky than PKP Cargo. It trades about 0.0 of its potential returns per unit of risk. PKP Cargo SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,458 in PKP Cargo SA on September 1, 2024 and sell it today you would lose (76.00) from holding PKP Cargo SA or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dino Polska SA vs. PKP Cargo SA
Performance |
| Timeline |
| Dino Polska SA |
| PKP Cargo SA |
Dino Polska and PKP Cargo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and PKP Cargo
The main advantage of trading using opposite Dino Polska and PKP Cargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, PKP Cargo 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 PKP Cargo will offset losses from the drop in PKP Cargo's long position.| Dino Polska vs. GreenX Metals | Dino Polska vs. PMPG Polskie Media | Dino Polska vs. Intersport Polska SA | Dino Polska vs. Road Studio SA |
| PKP Cargo vs. Banco Santander SA | PKP Cargo vs. UniCredit SpA | PKP Cargo vs. CEZ as | PKP Cargo 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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