Correlation Between Expat Macedonia and Expat Poland
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By analyzing existing cross correlation between Expat Macedonia Mbi10 and Expat Poland WIG20, you can compare the effects of market volatilities on Expat Macedonia and Expat Poland 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 Expat Macedonia with a short position of Expat Poland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expat Macedonia and Expat Poland.
Diversification Opportunities for Expat Macedonia and Expat Poland
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expat and Expat is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Expat Macedonia Mbi10 and Expat Poland WIG20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Poland WIG20 and Expat Macedonia 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 Expat Macedonia Mbi10 are associated (or correlated) with Expat Poland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Poland WIG20 has no effect on the direction of Expat Macedonia i.e., Expat Macedonia and Expat Poland go up and down completely randomly.
Pair Corralation between Expat Macedonia and Expat Poland
Assuming the 90 days trading horizon Expat Macedonia is expected to generate 1.19 times less return on investment than Expat Poland. But when comparing it to its historical volatility, Expat Macedonia Mbi10 is 6.89 times less risky than Expat Poland. It trades about 0.34 of its potential returns per unit of risk. Expat Poland WIG20 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 58.00 in Expat Poland WIG20 on September 5, 2024 and sell it today you would earn a total of 2.00 from holding Expat Poland WIG20 or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expat Macedonia Mbi10 vs. Expat Poland WIG20
Performance |
| Timeline |
| Expat Macedonia Mbi10 |
| Expat Poland WIG20 |
Expat Macedonia and Expat Poland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expat Macedonia and Expat Poland
The main advantage of trading using opposite Expat Macedonia and Expat Poland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expat Macedonia position performs unexpectedly, Expat Poland 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 Expat Poland will offset losses from the drop in Expat Poland's long position.| Expat Macedonia vs. UBS Fund Solutions | Expat Macedonia vs. Xtrackers II | Expat Macedonia vs. Xtrackers Nikkei 225 | Expat Macedonia vs. iShares VII PLC |
| Expat Poland vs. UBS Fund Solutions | Expat Poland vs. Xtrackers II | Expat Poland vs. Xtrackers Nikkei 225 | Expat Poland vs. SPDR Gold Shares |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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