Correlation Between Live Motion and Dino Polska
Can any of the company-specific risk be diversified away by investing in both Live Motion 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 Live Motion and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Motion Games and Dino Polska SA, you can compare the effects of market volatilities on Live Motion 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 Live Motion with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Motion and Dino Polska.
Diversification Opportunities for Live Motion and Dino Polska
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and Dino is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Live Motion Games 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 Live Motion 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 Live Motion Games 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 Live Motion i.e., Live Motion and Dino Polska go up and down completely randomly.
Pair Corralation between Live Motion and Dino Polska
Assuming the 90 days trading horizon Live Motion Games is expected to under-perform the Dino Polska. In addition to that, Live Motion is 2.48 times more volatile than Dino Polska SA. It trades about -0.08 of its total potential returns per unit of risk. Dino Polska SA is currently generating about -0.01 per unit of volatility. If you would invest 45,990 in Dino Polska SA on September 12, 2024 and sell it today you would lose (5,420) from holding Dino Polska SA or give up 11.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.97% |
| Values | Daily Returns |
Live Motion Games vs. Dino Polska SA
Performance |
| Timeline |
| Live Motion Games |
| Dino Polska SA |
Live Motion and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Motion and Dino Polska
The main advantage of trading using opposite Live Motion and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Motion 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.| Live Motion vs. Creativeforge Games SA | Live Motion vs. ECC Games SA | Live Motion vs. Asseco Business Solutions | Live Motion vs. Detalion Games SA |
| Dino Polska vs. LSI Software SA | Dino Polska vs. Alior Bank SA | Dino Polska vs. Medicofarma Biotech SA | Dino Polska vs. Santander Bank Polska |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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