Correlation Between Polski Koncern and Dino Polska
Can any of the company-specific risk be diversified away by investing in both Polski Koncern 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 Polski Koncern and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polski Koncern Naftowy and Dino Polska SA, you can compare the effects of market volatilities on Polski Koncern 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 Polski Koncern with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and Dino Polska.
Diversification Opportunities for Polski Koncern and Dino Polska
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Polski and Dino is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy 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 Polski Koncern 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 Polski Koncern Naftowy 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 Polski Koncern i.e., Polski Koncern and Dino Polska go up and down completely randomly.
Pair Corralation between Polski Koncern and Dino Polska
Assuming the 90 days trading horizon Polski Koncern is expected to generate 2.65 times less return on investment than Dino Polska. But when comparing it to its historical volatility, Polski Koncern Naftowy is 1.02 times less risky than Dino Polska. It trades about 0.08 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. Dino Polska SA
Performance |
| Timeline |
| Polski Koncern Naftowy |
| Dino Polska SA |
Polski Koncern and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and Dino Polska
The main advantage of trading using opposite Polski Koncern and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern 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.| Polski Koncern vs. TEN SQUARE GAMES | Polski Koncern vs. Bank Millennium SA | Polski Koncern vs. Vivid Games SA | Polski Koncern vs. BNP Paribas Bank |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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