Correlation Between WIG 30 and Erbud SA
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By analyzing existing cross correlation between WIG 30 and Erbud SA, you can compare the effects of market volatilities on WIG 30 and Erbud 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 Erbud SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Erbud SA.
Diversification Opportunities for WIG 30 and Erbud SA
Very weak diversification
The 3 months correlation between WIG and Erbud is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Erbud SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erbud 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 Erbud SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erbud SA has no effect on the direction of WIG 30 i.e., WIG 30 and Erbud SA go up and down completely randomly.
Pair Corralation between WIG 30 and Erbud SA
Assuming the 90 days trading horizon WIG 30 is expected to under-perform the Erbud SA. But the index apears to be less risky and, when comparing its historical volatility, WIG 30 is 1.88 times less risky than Erbud SA. The index trades about -0.06 of its potential returns per unit of risk. The Erbud SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,210 in Erbud SA on September 2, 2024 and sell it today you would earn a total of 70.00 from holding Erbud SA or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIG 30 vs. Erbud SA
Performance |
| Timeline |
WIG 30 and Erbud SA Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Erbud SA
Pair trading matchups for Erbud SA
Pair Trading with WIG 30 and Erbud SA
The main advantage of trading using opposite WIG 30 and Erbud SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Erbud 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 Erbud SA will offset losses from the drop in Erbud SA's long position.| WIG 30 vs. Skyline Investment SA | WIG 30 vs. CI Games SA | WIG 30 vs. Echo Investment SA | WIG 30 vs. Varsav Game Studios |
| Erbud SA vs. Banco Santander SA | Erbud SA vs. UniCredit SpA | Erbud SA vs. CEZ as | Erbud 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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