Correlation Between Pepco Group and Dino Polska
Can any of the company-specific risk be diversified away by investing in both Pepco 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 Pepco 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 Pepco Group BV and Dino Polska SA, you can compare the effects of market volatilities on Pepco 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 Pepco Group with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pepco Group and Dino Polska.
Diversification Opportunities for Pepco Group and Dino Polska
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pepco and Dino is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pepco Group BV 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 Pepco 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 Pepco Group BV 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 Pepco Group i.e., Pepco Group and Dino Polska go up and down completely randomly.
Pair Corralation between Pepco Group and Dino Polska
Assuming the 90 days trading horizon Pepco Group is expected to generate 1.61 times less return on investment than Dino Polska. In addition to that, Pepco Group is 1.72 times more volatile than Dino Polska SA. It trades about 0.07 of its total potential returns per unit of risk. Dino Polska SA is currently generating about 0.21 per unit of volatility. If you would invest 39,410 in Dino Polska SA on November 3, 2024 and sell it today you would earn a total of 5,620 from holding Dino Polska SA or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pepco Group BV vs. Dino Polska SA
Performance |
| Timeline |
| Pepco Group BV |
| Dino Polska SA |
Pepco Group and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pepco Group and Dino Polska
The main advantage of trading using opposite Pepco Group and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pepco 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.| Pepco Group vs. Gamedust SA | Pepco Group vs. X Trade Brokers | Pepco Group vs. Centrum Finansowe Banku | Pepco Group vs. Alior Bank 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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