Correlation Between Intersport Polska and Dino Polska

Can any of the company-specific risk be diversified away by investing in both Intersport Polska 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 Intersport Polska and Dino Polska into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intersport Polska SA and Dino Polska SA, you can compare the effects of market volatilities on Intersport Polska 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 Intersport Polska with a short position of Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intersport Polska and Dino Polska.

Diversification Opportunities for Intersport Polska and Dino Polska

0.5

Correlation Coefficient

Intersport Polska  Dino Polska

Very weak diversification

The 3 months correlation between Intersport and Dino is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intersport Polska 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 Intersport 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 Intersport Polska 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 Intersport Polska i.e., Intersport Polska and Dino Polska go up and down completely randomly.

Pair Corralation between Intersport Polska and Dino Polska

Assuming the 90 days trading horizon Intersport Polska is expected to generate 2.0 times less return on investment than Dino Polska. In addition to that, Intersport Polska is 2.33 times more volatile than Dino Polska SA. It trades about 0.0 of its total potential returns per unit of risk. Dino Polska SA is currently generating about 0.02 per unit of volatility. If you would invest  35,280  in Dino Polska SA on September 26, 2024 and sell it today you would earn a total of  4,010  from holding Dino Polska SA or generate 11.37% return on investment over 90 days.

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

Intersport Polska SA  vs.  Dino Polska SA

Intersport Polska

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intersport Polska SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Dino Polska SA

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dino Polska SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Dino Polska may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Intersport Polska and Dino Polska

The main advantage of trading using opposite Intersport Polska and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intersport Polska 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 Intersport Polska 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.