Correlation Between Beta MWIG40TR and ED Invest
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By analyzing existing cross correlation between Beta mWIG40TR Portfelowy and ED Invest SA, you can compare the effects of market volatilities on Beta MWIG40TR and ED Invest 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 Beta MWIG40TR with a short position of ED Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beta MWIG40TR and ED Invest.
Diversification Opportunities for Beta MWIG40TR and ED Invest
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beta and EDI is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Beta mWIG40TR Portfelowy and ED Invest SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ED Invest SA and Beta MWIG40TR 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 Beta mWIG40TR Portfelowy are associated (or correlated) with ED Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ED Invest SA has no effect on the direction of Beta MWIG40TR i.e., Beta MWIG40TR and ED Invest go up and down completely randomly.
Pair Corralation between Beta MWIG40TR and ED Invest
Assuming the 90 days trading horizon Beta MWIG40TR is expected to generate 6.6 times less return on investment than ED Invest. But when comparing it to its historical volatility, Beta mWIG40TR Portfelowy is 4.21 times less risky than ED Invest. It trades about 0.13 of its potential returns per unit of risk. ED Invest SA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 560.00 in ED Invest SA on September 4, 2024 and sell it today you would earn a total of 88.00 from holding ED Invest SA or generate 15.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beta mWIG40TR Portfelowy vs. ED Invest SA
Performance |
| Timeline |
| Beta mWIG40TR Portfelowy |
| ED Invest SA |
Beta MWIG40TR and ED Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beta MWIG40TR and ED Invest
The main advantage of trading using opposite Beta MWIG40TR and ED Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beta MWIG40TR position performs unexpectedly, ED Invest 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 ED Invest will offset losses from the drop in ED Invest's long position.| Beta MWIG40TR vs. Asseco Business Solutions | Beta MWIG40TR vs. Kogeneracja SA | Beta MWIG40TR vs. Asseco South Eastern | Beta MWIG40TR vs. CFI Holding SA |
| ED Invest vs. Monnari Trade SA | ED Invest vs. New Tech Venture | ED Invest vs. Skyline Investment SA | ED Invest vs. Tower Investments SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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