Correlation Between Dino Polska and SUNEX SA
Can any of the company-specific risk be diversified away by investing in both Dino Polska and SUNEX 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 SUNEX 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 SUNEX SA, you can compare the effects of market volatilities on Dino Polska and SUNEX 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 SUNEX SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and SUNEX SA.
Diversification Opportunities for Dino Polska and SUNEX SA
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dino and SUNEX is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and SUNEX SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNEX 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 SUNEX SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNEX SA has no effect on the direction of Dino Polska i.e., Dino Polska and SUNEX SA go up and down completely randomly.
Pair Corralation between Dino Polska and SUNEX SA
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 2.24 times more return on investment than SUNEX SA. However, Dino Polska is 2.24 times more volatile than SUNEX SA. It trades about 0.23 of its potential returns per unit of risk. SUNEX SA is currently generating about -0.42 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 | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dino Polska SA vs. SUNEX SA
Performance |
| Timeline |
| Dino Polska SA |
| SUNEX SA |
Dino Polska and SUNEX SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and SUNEX SA
The main advantage of trading using opposite Dino Polska and SUNEX SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, SUNEX 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 SUNEX SA will offset losses from the drop in SUNEX SA'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 |
| SUNEX SA vs. Banco Santander SA | SUNEX SA vs. UniCredit SpA | SUNEX SA vs. CEZ as | SUNEX SA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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