Correlation Between Dino Polska and WSE WIG
Can any of the company-specific risk be diversified away by investing in both Dino Polska and WSE WIG 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 WSE WIG 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 WSE WIG INDEX, you can compare the effects of market volatilities on Dino Polska and WSE WIG 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 WSE WIG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and WSE WIG.
Diversification Opportunities for Dino Polska and WSE WIG
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dino and WSE is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and WSE WIG INDEX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WSE WIG INDEX 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 WSE WIG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WSE WIG INDEX has no effect on the direction of Dino Polska i.e., Dino Polska and WSE WIG go up and down completely randomly.
Pair Corralation between Dino Polska and WSE WIG
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 2.29 times more return on investment than WSE WIG. However, Dino Polska is 2.29 times more volatile than WSE WIG INDEX. It trades about 0.01 of its potential returns per unit of risk. WSE WIG INDEX is currently generating about -0.05 per unit of risk. If you would invest 39,210 in Dino Polska SA on August 29, 2024 and sell it today you would earn a total of 90.00 from holding Dino Polska SA or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Dino Polska SA vs. WSE WIG INDEX
Performance |
| Timeline |
Dino Polska and WSE WIG Volatility Contrast
Predicted Return Density |
| Returns |
Dino Polska SA
Pair trading matchups for Dino Polska
WSE WIG INDEX
Pair trading matchups for WSE WIG
Pair Trading with Dino Polska and WSE WIG
The main advantage of trading using opposite Dino Polska and WSE WIG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, WSE WIG 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 WSE WIG will offset losses from the drop in WSE WIG's long position.| Dino Polska vs. Asseco Business Solutions | Dino Polska vs. Detalion Games SA | Dino Polska vs. CFI Holding SA | Dino Polska vs. HM Inwest SA |
| WSE WIG vs. GreenX Metals | WSE WIG vs. Intersport Polska SA | WSE WIG vs. MCI Management SA | WSE WIG vs. Centrum Finansowe Banku |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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