Correlation Between PCF Group and Dino Polska
Can any of the company-specific risk be diversified away by investing in both PCF 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 PCF 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 PCF Group SA and Dino Polska SA, you can compare the effects of market volatilities on PCF 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 PCF Group with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCF Group and Dino Polska.
Diversification Opportunities for PCF Group and Dino Polska
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PCF and Dino is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PCF 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 PCF 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 PCF 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 PCF Group i.e., PCF Group and Dino Polska go up and down completely randomly.
Pair Corralation between PCF Group and Dino Polska
Assuming the 90 days trading horizon PCF Group SA is expected to under-perform the Dino Polska. In addition to that, PCF Group is 1.33 times more volatile than Dino Polska SA. It trades about -0.09 of its total potential returns per unit of risk. Dino Polska SA is currently generating about 0.03 per unit of volatility. If you would invest 36,400 in Dino Polska SA on November 2, 2024 and sell it today you would earn a total of 8,200 from holding Dino Polska SA or generate 22.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PCF Group SA vs. Dino Polska SA
Performance |
| Timeline |
| PCF Group SA |
| Dino Polska SA |
PCF Group and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PCF Group and Dino Polska
The main advantage of trading using opposite PCF Group and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCF 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.| PCF Group vs. UF Games SA | PCF Group vs. Gaming Factory SA | PCF Group vs. Creativeforge Games SA | PCF Group vs. M Food SA |
| Dino Polska vs. Quantum Software SA | Dino Polska vs. LSI Software SA | Dino Polska vs. GreenX Metals | Dino Polska vs. Creotech Instruments 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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