Correlation Between WIG 30 and Alta SA
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By analyzing existing cross correlation between WIG 30 and Alta SA, you can compare the effects of market volatilities on WIG 30 and Alta 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 Alta SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Alta SA.
Diversification Opportunities for WIG 30 and Alta SA
Poor diversification
The 3 months correlation between WIG and Alta is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Alta SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta 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 Alta SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta SA has no effect on the direction of WIG 30 i.e., WIG 30 and Alta SA go up and down completely randomly.
Pair Corralation between WIG 30 and Alta SA
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.42 times more return on investment than Alta SA. However, WIG 30 is 2.39 times less risky than Alta SA. It trades about -0.03 of its potential returns per unit of risk. Alta SA is currently generating about -0.08 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIG 30 vs. Alta SA
Performance |
| Timeline |
WIG 30 and Alta SA Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Alta SA
Pair trading matchups for Alta SA
Pair Trading with WIG 30 and Alta SA
The main advantage of trading using opposite WIG 30 and Alta SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Alta 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 Alta SA will offset losses from the drop in Alta 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 |
| Alta SA vs. ING Bank lski | Alta SA vs. Monnari Trade SA | Alta SA vs. Intersport Polska SA | Alta SA vs. Drago entertainment 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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