Correlation Between Inter Cars and Warsaw WIG80
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By analyzing existing cross correlation between Inter Cars SA and Warsaw WIG80 Index, you can compare the effects of market volatilities on Inter Cars and Warsaw WIG80 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 Inter Cars with a short position of Warsaw WIG80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Cars and Warsaw WIG80.
Diversification Opportunities for Inter Cars and Warsaw WIG80
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inter and Warsaw is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Inter Cars SA and Warsaw WIG80 Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warsaw WIG80 Index and Inter Cars 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 Inter Cars SA are associated (or correlated) with Warsaw WIG80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warsaw WIG80 Index has no effect on the direction of Inter Cars i.e., Inter Cars and Warsaw WIG80 go up and down completely randomly.
Pair Corralation between Inter Cars and Warsaw WIG80
Assuming the 90 days trading horizon Inter Cars SA is expected to generate 2.98 times more return on investment than Warsaw WIG80. However, Inter Cars is 2.98 times more volatile than Warsaw WIG80 Index. It trades about 0.13 of its potential returns per unit of risk. Warsaw WIG80 Index is currently generating about -0.11 per unit of risk. If you would invest 47,100 in Inter Cars SA on September 1, 2024 and sell it today you would earn a total of 2,250 from holding Inter Cars SA or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Inter Cars SA vs. Warsaw WIG80 Index
Performance |
| Timeline |
Inter Cars and Warsaw WIG80 Volatility Contrast
Predicted Return Density |
| Returns |
Inter Cars SA
Pair trading matchups for Inter Cars
Warsaw WIG80 Index
Pair trading matchups for Warsaw WIG80
Pair Trading with Inter Cars and Warsaw WIG80
The main advantage of trading using opposite Inter Cars and Warsaw WIG80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Cars position performs unexpectedly, Warsaw WIG80 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 Warsaw WIG80 will offset losses from the drop in Warsaw WIG80's long position.| Inter Cars vs. Banco Santander SA | Inter Cars vs. UniCredit SpA | Inter Cars vs. CEZ as | Inter Cars vs. Polski Koncern Naftowy |
| Warsaw WIG80 vs. Monnari Trade SA | Warsaw WIG80 vs. MW Trade SA | Warsaw WIG80 vs. Movie Games SA | Warsaw WIG80 vs. Investment Friends Capital |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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