Correlation Between WIG 30 and 4Mass SA
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By analyzing existing cross correlation between WIG 30 and 4Mass SA, you can compare the effects of market volatilities on WIG 30 and 4Mass SA 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 WIG 30 with a short position of 4Mass SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and 4Mass SA.
Diversification Opportunities for WIG 30 and 4Mass SA
Very good diversification
The 3 months correlation between WIG and 4Mass is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and 4Mass SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4Mass SA and WIG 30 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 WIG 30 are associated (or correlated) with 4Mass SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4Mass SA has no effect on the direction of WIG 30 i.e., WIG 30 and 4Mass SA go up and down completely randomly.
Pair Corralation between WIG 30 and 4Mass SA
Assuming the 90 days trading horizon WIG 30 is expected to generate 1.19 times more return on investment than 4Mass SA. However, WIG 30 is 1.19 times more volatile than 4Mass SA. It trades about -0.03 of its potential returns per unit of risk. 4Mass SA is currently generating about -0.49 per unit of risk. If you would invest 283,135 in WIG 30 on August 31, 2024 and sell it today you would lose (3,084) from holding WIG 30 or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIG 30 vs. 4Mass SA
Performance |
| Timeline |
WIG 30 and 4Mass SA Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
4Mass SA
Pair trading matchups for 4Mass SA
Pair Trading with WIG 30 and 4Mass SA
The main advantage of trading using opposite WIG 30 and 4Mass SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, 4Mass SA 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 4Mass SA will offset losses from the drop in 4Mass SA's long position.| WIG 30 vs. New Tech Venture | WIG 30 vs. Quantum Software SA | WIG 30 vs. Carlson Investments SA | WIG 30 vs. Play2Chill SA |
| 4Mass SA vs. Asseco Business Solutions | 4Mass SA vs. Detalion Games SA | 4Mass SA vs. Asseco South Eastern | 4Mass SA vs. CFI Holding 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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