Correlation Between HM Inwest and Dino Polska
Can any of the company-specific risk be diversified away by investing in both HM Inwest and Dino Polska 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 HM Inwest and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HM Inwest SA and Dino Polska SA, you can compare the effects of market volatilities on HM Inwest and Dino Polska 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 HM Inwest with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of HM Inwest and Dino Polska.
Diversification Opportunities for HM Inwest and Dino Polska
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HMI and Dino is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding HM Inwest SA and Dino Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dino Polska SA and HM Inwest 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 HM Inwest SA are associated (or correlated) with Dino Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dino Polska SA has no effect on the direction of HM Inwest i.e., HM Inwest and Dino Polska go up and down completely randomly.
Pair Corralation between HM Inwest and Dino Polska
Assuming the 90 days trading horizon HM Inwest is expected to generate 3.95 times less return on investment than Dino Polska. But when comparing it to its historical volatility, HM Inwest SA is 4.0 times less risky than Dino Polska. It trades about 0.24 of its potential returns per unit of risk. Dino Polska SA is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 33,270 in Dino Polska SA on August 29, 2024 and sell it today you would earn a total of 6,030 from holding Dino Polska SA or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HM Inwest SA vs. Dino Polska SA
Performance |
| Timeline |
| HM Inwest SA |
| Dino Polska SA |
HM Inwest and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HM Inwest and Dino Polska
The main advantage of trading using opposite HM Inwest and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HM Inwest position performs unexpectedly, Dino Polska 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 Dino Polska will offset losses from the drop in Dino Polska's long position.| HM Inwest vs. True Games Syndicate | HM Inwest vs. Tower Investments SA | HM Inwest vs. Kool2play SA | HM Inwest vs. Gaming Factory SA |
| Dino Polska vs. Asseco Business Solutions | Dino Polska vs. Detalion Games SA | Dino Polska vs. CFI Holding SA | Dino Polska vs. HM Inwest 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |