Correlation Between Skyline Investment and Dino Polska

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Can any of the company-specific risk be diversified away by investing in both Skyline Investment 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 Skyline Investment and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skyline Investment SA and Dino Polska SA, you can compare the effects of market volatilities on Skyline Investment 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 Skyline Investment with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skyline Investment and Dino Polska.

Diversification Opportunities for Skyline Investment and Dino Polska

-0.22
  Correlation Coefficient

Very good diversification

The 3 months correlation between Skyline and Dino is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Skyline Investment 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 Skyline Investment 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 Skyline Investment 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 Skyline Investment i.e., Skyline Investment and Dino Polska go up and down completely randomly.

Pair Corralation between Skyline Investment and Dino Polska

Assuming the 90 days trading horizon Skyline Investment SA is expected to generate 1.85 times more return on investment than Dino Polska. However, Skyline Investment is 1.85 times more volatile than Dino Polska SA. It trades about 0.06 of its potential returns per unit of risk. Dino Polska SA is currently generating about 0.02 per unit of risk. If you would invest  70.00  in Skyline Investment SA on August 26, 2024 and sell it today you would earn a total of  86.00  from holding Skyline Investment SA or generate 122.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Skyline Investment SA  vs.  Dino Polska SA

 Performance 
       Timeline  
Skyline Investment 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Skyline Investment SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Skyline Investment is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
Dino Polska SA 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Dino Polska SA are ranked lower than 10 (%) 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.

Skyline Investment and Dino Polska Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Skyline Investment and Dino Polska

The main advantage of trading using opposite Skyline Investment and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skyline Investment 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.
The idea behind Skyline Investment SA and Dino Polska 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.
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 Channel module to use Commodity Channel Index to analyze current equity momentum.

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