Correlation Between Dino Polska and Selena FM
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Selena FM 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 Selena FM 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 Selena FM SA, you can compare the effects of market volatilities on Dino Polska and Selena FM 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 Selena FM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Selena FM.
Diversification Opportunities for Dino Polska and Selena FM
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dino and Selena is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Selena FM SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selena FM 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 Selena FM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selena FM SA has no effect on the direction of Dino Polska i.e., Dino Polska and Selena FM go up and down completely randomly.
Pair Corralation between Dino Polska and Selena FM
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 1.42 times more return on investment than Selena FM. However, Dino Polska is 1.42 times more volatile than Selena FM SA. It trades about 0.23 of its potential returns per unit of risk. Selena FM SA is currently generating about -0.2 per unit of risk. If you would invest 33,170 in Dino Polska SA on September 1, 2024 and sell it today you would earn a total of 5,420 from holding Dino Polska SA or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dino Polska SA vs. Selena FM SA
Performance |
| Timeline |
| Dino Polska SA |
| Selena FM SA |
Dino Polska and Selena FM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and Selena FM
The main advantage of trading using opposite Dino Polska and Selena FM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Selena FM 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 Selena FM will offset losses from the drop in Selena FM'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 |
| Selena FM vs. Banco Santander SA | Selena FM vs. UniCredit SpA | Selena FM vs. CEZ as | Selena FM 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |