Correlation Between WIG 30 and Beta ETF
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By analyzing existing cross correlation between WIG 30 and Beta ETF SP, you can compare the effects of market volatilities on WIG 30 and Beta ETF 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 Beta ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Beta ETF.
Diversification Opportunities for WIG 30 and Beta ETF
Very good diversification
The 3 months correlation between WIG and Beta is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Beta ETF SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beta ETF SP 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 Beta ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beta ETF SP has no effect on the direction of WIG 30 i.e., WIG 30 and Beta ETF go up and down completely randomly.
Pair Corralation between WIG 30 and Beta ETF
Assuming the 90 days trading horizon WIG 30 is expected to under-perform the Beta ETF. In addition to that, WIG 30 is 1.78 times more volatile than Beta ETF SP. It trades about -0.08 of its total potential returns per unit of risk. Beta ETF SP is currently generating about 0.16 per unit of volatility. If you would invest 9,939 in Beta ETF SP on August 29, 2024 and sell it today you would earn a total of 451.00 from holding Beta ETF SP or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIG 30 vs. Beta ETF SP
Performance |
| Timeline |
WIG 30 and Beta ETF Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Beta ETF SP
Pair trading matchups for Beta ETF
Pair Trading with WIG 30 and Beta ETF
The main advantage of trading using opposite WIG 30 and Beta ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Beta ETF 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 Beta ETF will offset losses from the drop in Beta ETF'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 |
| Beta ETF vs. Beta mWIG40TR Portfelowy | Beta ETF vs. Beta ETF Nasdaq 100 | Beta ETF vs. Beta ETF Nasdaq 100 | Beta ETF vs. Beta WIG20TR Portfelowy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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