Correlation Between WIG 30 and Budimex SA
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By analyzing existing cross correlation between WIG 30 and Budimex SA, you can compare the effects of market volatilities on WIG 30 and Budimex 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 Budimex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Budimex SA.
Diversification Opportunities for WIG 30 and Budimex SA
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WIG and Budimex is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Budimex SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Budimex 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 Budimex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Budimex SA has no effect on the direction of WIG 30 i.e., WIG 30 and Budimex SA go up and down completely randomly.
Pair Corralation between WIG 30 and Budimex SA
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.53 times more return on investment than Budimex SA. However, WIG 30 is 1.87 times less risky than Budimex SA. It trades about -0.11 of its potential returns per unit of risk. Budimex SA is currently generating about -0.24 per unit of risk. If you would invest 289,657 in WIG 30 on August 30, 2024 and sell it today you would lose (9,606) from holding WIG 30 or give up 3.32% 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. Budimex SA
Performance |
| Timeline |
WIG 30 and Budimex SA Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Budimex SA
Pair trading matchups for Budimex SA
Pair Trading with WIG 30 and Budimex SA
The main advantage of trading using opposite WIG 30 and Budimex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Budimex 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 Budimex SA will offset losses from the drop in Budimex SA's long position.| WIG 30 vs. UF Games SA | WIG 30 vs. Intersport Polska SA | WIG 30 vs. PZ Cormay SA | WIG 30 vs. Mlk Foods Public |
| Budimex SA vs. Banco Santander SA | Budimex SA vs. UniCredit SpA | Budimex SA vs. CEZ as | Budimex SA vs. Polski Koncern Naftowy |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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