Correlation Between WIG 30 and AB SA
Specify exactly 2 symbols:
By analyzing existing cross correlation between WIG 30 and AB SA, you can compare the effects of market volatilities on WIG 30 and AB 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 AB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and AB SA.
Diversification Opportunities for WIG 30 and AB SA
Weak diversification
The 3 months correlation between WIG and ABE is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and AB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB 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 AB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB SA has no effect on the direction of WIG 30 i.e., WIG 30 and AB SA go up and down completely randomly.
Pair Corralation between WIG 30 and AB SA
Assuming the 90 days trading horizon WIG 30 is expected to under-perform the AB SA. But the index apears to be less risky and, when comparing its historical volatility, WIG 30 is 1.47 times less risky than AB SA. The index trades about -0.1 of its potential returns per unit of risk. The AB SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,900 in AB SA on August 30, 2024 and sell it today you would earn a total of 40.00 from holding AB SA or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIG 30 vs. AB SA
Performance |
| Timeline |
WIG 30 and AB SA Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
AB SA
Pair trading matchups for AB SA
Pair Trading with WIG 30 and AB SA
The main advantage of trading using opposite WIG 30 and AB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, AB 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 AB SA will offset losses from the drop in AB SA's long position.| WIG 30 vs. Carlson Investments SA | WIG 30 vs. Quantum Software SA | WIG 30 vs. BNP Paribas Bank | WIG 30 vs. PLAYWAY 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |