Correlation Between Bank Polska and Dino Polska
Can any of the company-specific risk be diversified away by investing in both Bank Polska 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 Bank Polska and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Polska Kasa and Dino Polska SA, you can compare the effects of market volatilities on Bank Polska 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 Bank Polska with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Polska and Dino Polska.
Diversification Opportunities for Bank Polska and Dino Polska
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Dino is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank Polska Kasa 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 Bank Polska 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 Bank Polska Kasa 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 Bank Polska i.e., Bank Polska and Dino Polska go up and down completely randomly.
Pair Corralation between Bank Polska and Dino Polska
Assuming the 90 days trading horizon Bank Polska is expected to generate 1.19 times less return on investment than Dino Polska. But when comparing it to its historical volatility, Bank Polska Kasa is 1.19 times less risky than Dino Polska. It trades about 0.21 of its potential returns per unit of risk. Dino Polska SA is currently generating about 0.21 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Polska Kasa vs. Dino Polska SA
Performance |
| Timeline |
| Bank Polska Kasa |
| Dino Polska SA |
Bank Polska and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Polska and Dino Polska
The main advantage of trading using opposite Bank Polska and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Polska 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.| Bank Polska vs. Noble Financials SA | Bank Polska vs. Pyramid Games SA | Bank Polska vs. Vivid Games SA | Bank Polska vs. Creativeforge Games 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |