Correlation Between UF Games and Dino Polska
Can any of the company-specific risk be diversified away by investing in both UF Games 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 UF Games and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UF Games SA and Dino Polska SA, you can compare the effects of market volatilities on UF Games 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 UF Games with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of UF Games and Dino Polska.
Diversification Opportunities for UF Games and Dino Polska
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UFG and Dino is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding UF Games 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 UF Games 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 UF Games 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 UF Games i.e., UF Games and Dino Polska go up and down completely randomly.
Pair Corralation between UF Games and Dino Polska
Assuming the 90 days trading horizon UF Games SA is expected to under-perform the Dino Polska. In addition to that, UF Games is 1.15 times more volatile than Dino Polska SA. It trades about -0.01 of its total potential returns per unit of risk. Dino Polska SA is currently generating about -0.01 per unit of volatility. If you would invest 45,990 in Dino Polska SA on September 12, 2024 and sell it today you would lose (5,420) from holding Dino Polska SA or give up 11.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.73% |
| Values | Daily Returns |
UF Games SA vs. Dino Polska SA
Performance |
| Timeline |
| UF Games SA |
| Dino Polska SA |
UF Games and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UF Games and Dino Polska
The main advantage of trading using opposite UF Games and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UF Games 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.| UF Games vs. Banco Santander SA | UF Games vs. UniCredit SpA | UF Games vs. CEZ as | UF Games vs. Polski Koncern Naftowy |
| Dino Polska vs. LSI Software SA | Dino Polska vs. Alior Bank SA | Dino Polska vs. Medicofarma Biotech SA | Dino Polska vs. Santander Bank Polska |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |