Correlation Between Dino Polska and Gielda Praw
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Gielda Praw 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 Gielda Praw 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 Gielda Praw Majatkowych, you can compare the effects of market volatilities on Dino Polska and Gielda Praw 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 Gielda Praw. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Gielda Praw.
Diversification Opportunities for Dino Polska and Gielda Praw
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dino and Gielda is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Gielda Praw Majatkowych in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gielda Praw Majatkowych 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 Gielda Praw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gielda Praw Majatkowych has no effect on the direction of Dino Polska i.e., Dino Polska and Gielda Praw go up and down completely randomly.
Pair Corralation between Dino Polska and Gielda Praw
Assuming the 90 days trading horizon Dino Polska SA is expected to under-perform the Gielda Praw. But the stock apears to be less risky and, when comparing its historical volatility, Dino Polska SA is 1.12 times less risky than Gielda Praw. The stock trades about -0.01 of its potential returns per unit of risk. The Gielda Praw Majatkowych is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 678.00 in Gielda Praw Majatkowych on September 12, 2024 and sell it today you would earn a total of 262.00 from holding Gielda Praw Majatkowych or generate 38.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Dino Polska SA vs. Gielda Praw Majatkowych
Performance |
| Timeline |
| Dino Polska SA |
| Gielda Praw Majatkowych |
Dino Polska and Gielda Praw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dino Polska and Gielda Praw
The main advantage of trading using opposite Dino Polska and Gielda Praw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Gielda Praw 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 Gielda Praw will offset losses from the drop in Gielda Praw's long position.| Dino Polska vs. LSI Software SA | Dino Polska vs. Alior Bank SA | Dino Polska vs. Medicofarma Biotech SA | Dino Polska vs. Santander Bank Polska |
| Gielda Praw vs. Bank Millennium SA | Gielda Praw vs. ING Bank lski | Gielda Praw vs. PZ Cormay SA | Gielda Praw vs. MCI Management 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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