Correlation Between Dino Polska and Santander Bank
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Santander Bank 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 Santander Bank 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 Santander Bank Polska, you can compare the effects of market volatilities on Dino Polska and Santander Bank 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 Santander Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Santander Bank.
Diversification Opportunities for Dino Polska and Santander Bank
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dino and Santander is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Santander Bank Polska in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santander Bank Polska 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 Santander Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santander Bank Polska has no effect on the direction of Dino Polska i.e., Dino Polska and Santander Bank go up and down completely randomly.
Pair Corralation between Dino Polska and Santander Bank
Assuming the 90 days trading horizon Dino Polska SA is expected to under-perform the Santander Bank. In addition to that, Dino Polska is 1.41 times more volatile than Santander Bank Polska. It trades about -0.01 of its total potential returns per unit of risk. Santander Bank Polska is currently generating about 0.01 per unit of volatility. If you would invest 43,378 in Santander Bank Polska on August 24, 2024 and sell it today you would earn a total of 672.00 from holding Santander Bank Polska or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dino Polska SA vs. Santander Bank Polska
Performance |
| Timeline |
| Dino Polska SA |
| Santander Bank Polska |
Dino Polska and Santander Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and Santander Bank
The main advantage of trading using opposite Dino Polska and Santander Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Santander Bank 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 Santander Bank will offset losses from the drop in Santander Bank's long position.| Dino Polska vs. Asseco Business Solutions | Dino Polska vs. Detalion Games SA | Dino Polska vs. Asseco South Eastern | Dino Polska vs. Movie Games SA |
| Santander Bank vs. Cloud Technologies SA | Santander Bank vs. Pixel Crow Games | Santander Bank vs. SOFTWARE MANSION SPOLKA | Santander Bank vs. Drago entertainment 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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