Correlation Between Dino Polska and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both Dino Polska and Intersport 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 Dino Polska and Intersport Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dino Polska SA and Intersport Polska SA, you can compare the effects of market volatilities on Dino Polska and Intersport 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 Dino Polska with a short position of Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Intersport Polska.
Diversification Opportunities for Dino Polska and Intersport Polska
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dino and Intersport is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska and Dino 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 Dino Polska SA are associated (or correlated) with Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of Dino Polska i.e., Dino Polska and Intersport Polska go up and down completely randomly.
Pair Corralation between Dino Polska and Intersport Polska
Assuming the 90 days trading horizon Dino Polska SA is expected to generate 0.27 times more return on investment than Intersport Polska. However, Dino Polska SA is 3.77 times less risky than Intersport Polska. It trades about 0.05 of its potential returns per unit of risk. Intersport Polska SA is currently generating about -0.03 per unit of risk. If you would invest 39,130 in Dino Polska SA on September 24, 2024 and sell it today you would earn a total of 430.00 from holding Dino Polska SA or generate 1.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dino Polska SA vs. Intersport Polska SA
Performance |
Timeline |
Dino Polska SA |
Intersport Polska |
Dino Polska and Intersport Polska Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dino Polska and Intersport Polska
The main advantage of trading using opposite Dino Polska and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Intersport 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 Intersport Polska will offset losses from the drop in Intersport Polska's long position.Dino Polska vs. Globe Trade Centre | Dino Polska vs. Quantum Software SA | Dino Polska vs. GreenX Metals | Dino Polska vs. Mlk Foods Public |
Intersport Polska vs. CEZ as | Intersport Polska vs. X Trade Brokers | Intersport Polska vs. Asseco Poland SA | Intersport Polska vs. Centrum Finansowe Banku |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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