Correlation Between Dino Polska and UF Games
Can any of the company-specific risk be diversified away by investing in both Dino Polska and UF Games 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 UF Games 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 UF Games SA, you can compare the effects of market volatilities on Dino Polska and UF Games 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 UF Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and UF Games.
Diversification Opportunities for Dino Polska and UF Games
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dino and UFG is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and UF Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UF Games 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 UF Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UF Games SA has no effect on the direction of Dino Polska i.e., Dino Polska and UF Games go up and down completely randomly.
Pair Corralation between Dino Polska and UF Games
Assuming the 90 days trading horizon Dino Polska is expected to generate 1.27 times less return on investment than UF Games. But when comparing it to its historical volatility, Dino Polska SA is 2.07 times less risky than UF Games. It trades about 0.3 of its potential returns per unit of risk. UF Games SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 99.00 in UF Games SA on October 21, 2024 and sell it today you would earn a total of 8.00 from holding UF Games SA or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 68.75% |
| Values | Daily Returns |
Dino Polska SA vs. UF Games SA
Performance |
| Timeline |
| Dino Polska SA |
| UF Games SA |
Dino Polska and UF Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and UF Games
The main advantage of trading using opposite Dino Polska and UF Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, UF Games 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 UF Games will offset losses from the drop in UF Games' long position.| Dino Polska vs. Monnari Trade SA | Dino Polska vs. UniCredit SpA | Dino Polska vs. Bank Millennium SA | Dino Polska vs. SOFTWARE MANSION SPOLKA |
| UF Games vs. Medicofarma Biotech SA | UF Games vs. PZ Cormay SA | UF Games vs. Quantum Software SA | UF Games vs. Inter Cars 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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