Correlation Between Dino Polska and RAFAKO SA
Can any of the company-specific risk be diversified away by investing in both Dino Polska and RAFAKO 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 RAFAKO 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 RAFAKO SA, you can compare the effects of market volatilities on Dino Polska and RAFAKO 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 RAFAKO SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and RAFAKO SA.
Diversification Opportunities for Dino Polska and RAFAKO SA
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dino and RAFAKO is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and RAFAKO SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAFAKO 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 RAFAKO SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAFAKO SA has no effect on the direction of Dino Polska i.e., Dino Polska and RAFAKO SA go up and down completely randomly.
Pair Corralation between Dino Polska and RAFAKO SA
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 0.45 times more return on investment than RAFAKO SA. However, Dino Polska SA is 2.21 times less risky than RAFAKO SA. It trades about 0.27 of its potential returns per unit of risk. RAFAKO SA is currently generating about -0.16 per unit of risk. If you would invest 33,270 in Dino Polska SA on August 27, 2024 and sell it today you would earn a total of 6,360 from holding Dino Polska SA or generate 19.12% 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. RAFAKO SA
Performance |
| Timeline |
| Dino Polska SA |
| RAFAKO SA |
Dino Polska and RAFAKO SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and RAFAKO SA
The main advantage of trading using opposite Dino Polska and RAFAKO SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, RAFAKO 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 RAFAKO SA will offset losses from the drop in RAFAKO SA's long position.| Dino Polska vs. True Games Syndicate | Dino Polska vs. Echo Investment SA | Dino Polska vs. 3R Games SA | Dino Polska vs. Ice Code Games |
| RAFAKO SA vs. TEN SQUARE GAMES | RAFAKO SA vs. Detalion Games SA | RAFAKO SA vs. Varsav Game Studios | RAFAKO SA vs. Carlson Investments 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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