Correlation Between MLP Group and Dino Polska
Can any of the company-specific risk be diversified away by investing in both MLP Group 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 MLP Group and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MLP Group SA and Dino Polska SA, you can compare the effects of market volatilities on MLP Group 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 MLP Group with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of MLP Group and Dino Polska.
Diversification Opportunities for MLP Group and Dino Polska
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MLP and Dino is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MLP Group 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 MLP Group 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 MLP Group 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 MLP Group i.e., MLP Group and Dino Polska go up and down completely randomly.
Pair Corralation between MLP Group and Dino Polska
Assuming the 90 days trading horizon MLP Group is expected to generate 2.66 times less return on investment than Dino Polska. But when comparing it to its historical volatility, MLP Group SA is 1.14 times less risky than Dino Polska. It trades about 0.12 of its potential returns per unit of risk. Dino Polska SA is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 40,110 in Dino Polska SA on November 3, 2024 and sell it today you would earn a total of 4,920 from holding Dino Polska SA or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MLP Group SA vs. Dino Polska SA
Performance |
| Timeline |
| MLP Group SA |
| Dino Polska SA |
MLP Group and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MLP Group and Dino Polska
The main advantage of trading using opposite MLP Group and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MLP Group 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.| MLP Group vs. Santander Bank Polska | MLP Group vs. Bank Millennium SA | MLP Group vs. Skyline Investment SA | MLP Group vs. Echo Investment SA |
| Dino Polska vs. Skyline Investment SA | Dino Polska vs. GreenX Metals | Dino Polska vs. MCI Management SA | Dino Polska vs. Gremi Media 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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