Correlation Between Expat Poland and Expat Slovakia
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By analyzing existing cross correlation between Expat Poland WIG20 and Expat Slovakia Sax, you can compare the effects of market volatilities on Expat Poland and Expat Slovakia 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 Poland with a short position of Expat Slovakia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expat Poland and Expat Slovakia.
Diversification Opportunities for Expat Poland and Expat Slovakia
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Expat and Expat is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Expat Poland WIG20 and Expat Slovakia Sax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Slovakia Sax and Expat Poland 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 Poland WIG20 are associated (or correlated) with Expat Slovakia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Slovakia Sax has no effect on the direction of Expat Poland i.e., Expat Poland and Expat Slovakia go up and down completely randomly.
Pair Corralation between Expat Poland and Expat Slovakia
Assuming the 90 days horizon Expat Poland WIG20 is expected to under-perform the Expat Slovakia. In addition to that, Expat Poland is 2.2 times more volatile than Expat Slovakia Sax. It trades about -0.05 of its total potential returns per unit of risk. Expat Slovakia Sax is currently generating about -0.04 per unit of volatility. If you would invest 54.00 in Expat Slovakia Sax on September 3, 2024 and sell it today you would lose (2.00) from holding Expat Slovakia Sax or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Expat Poland WIG20 vs. Expat Slovakia Sax
Performance |
| Timeline |
| Expat Poland WIG20 |
| Expat Slovakia Sax |
Expat Poland and Expat Slovakia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expat Poland and Expat Slovakia
The main advantage of trading using opposite Expat Poland and Expat Slovakia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expat Poland position performs unexpectedly, Expat Slovakia 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 Slovakia will offset losses from the drop in Expat Slovakia's long position.| Expat Poland vs. Expat Czech PX | Expat Poland vs. Expat Croatia Crobex | Expat Poland vs. Expat Serbia Belex15 | Expat Poland vs. Expat Slovenia SBI |
| Expat Slovakia vs. Expat Czech PX | Expat Slovakia vs. Expat Croatia Crobex | Expat Slovakia vs. Expat Serbia Belex15 | Expat Slovakia vs. Expat Poland WIG20 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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