Correlation Between Dino Polska and Mo Bruk

Can any of the company-specific risk be diversified away by investing in both Dino Polska and Mo Bruk 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 Mo Bruk 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 Mo Bruk SA, you can compare the effects of market volatilities on Dino Polska and Mo Bruk 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 Mo Bruk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dino Polska and Mo Bruk.

Diversification Opportunities for Dino Polska and Mo Bruk

0.16

Correlation Coefficient

Dino Polska  Mo Bruk

Average diversification

The 3 months correlation between Dino and MBR is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Dino Polska SA and Mo Bruk SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mo Bruk SA 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 Mo Bruk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mo Bruk SA has no effect on the direction of Dino Polska i.e., Dino Polska and Mo Bruk go up and down completely randomly.

Pair Corralation between Dino Polska and Mo Bruk

Assuming the 90 days trading horizon Dino Polska SA is expected to generate 1.27 times more return on investment than Mo Bruk. However, Dino Polska is 1.27 times more volatile than Mo Bruk SA. It trades about 0.22 of its potential returns per unit of risk. Mo Bruk SA is currently generating about 0.03 per unit of risk. If you would invest  39,560  in Dino Polska SA on December 20, 2024 and sell it today you would earn a total of  9,260  from holding Dino Polska SA or generate 23.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Dino Polska SA  vs.  Mo Bruk SA

Dino Polska SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dino Polska SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Dino Polska reported solid returns over the last few months and may actually be approaching a breakup point.

Mo Bruk SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mo Bruk SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Mo Bruk is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Dino Polska and Mo Bruk

The main advantage of trading using opposite Dino Polska and Mo Bruk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dino Polska position performs unexpectedly, Mo Bruk 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 Mo Bruk will offset losses from the drop in Mo Bruk's long position.

The idea behind Dino Polska SA and Mo Bruk SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.