Correlation Between WIG 30 and Amica SA
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By analyzing existing cross correlation between WIG 30 and Amica SA, you can compare the effects of market volatilities on WIG 30 and Amica 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 Amica SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Amica SA.
Diversification Opportunities for WIG 30 and Amica SA
Modest diversification
The 3 months correlation between WIG and Amica is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Amica SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amica 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 Amica SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amica SA has no effect on the direction of WIG 30 i.e., WIG 30 and Amica SA go up and down completely randomly.
Pair Corralation between WIG 30 and Amica SA
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.81 times more return on investment than Amica SA. However, WIG 30 is 1.23 times less risky than Amica SA. It trades about -0.06 of its potential returns per unit of risk. Amica SA is currently generating about -0.07 per unit of risk. If you would invest 314,045 in WIG 30 on September 1, 2024 and sell it today you would lose (33,165) from holding WIG 30 or give up 10.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
WIG 30 vs. Amica SA
Performance |
| Timeline |
WIG 30 and Amica SA Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Amica SA
Pair trading matchups for Amica SA
Pair Trading with WIG 30 and Amica SA
The main advantage of trading using opposite WIG 30 and Amica SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Amica 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 Amica SA will offset losses from the drop in Amica SA's long position.| WIG 30 vs. ING Bank lski | WIG 30 vs. LSI Software SA | WIG 30 vs. Quantum Software SA | WIG 30 vs. GreenX Metals |
| Amica SA vs. Echo Investment SA | Amica SA vs. Esotiq Henderson SA | Amica SA vs. Asseco Business Solutions | Amica SA vs. Detalion Games 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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