Correlation Between WIG 30 and Investment Friends
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By analyzing existing cross correlation between WIG 30 and Investment Friends Capital, you can compare the effects of market volatilities on WIG 30 and Investment Friends 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 Investment Friends. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Investment Friends.
Diversification Opportunities for WIG 30 and Investment Friends
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WIG and Investment is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Investment Friends Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Friends 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 Investment Friends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Friends has no effect on the direction of WIG 30 i.e., WIG 30 and Investment Friends go up and down completely randomly.
Pair Corralation between WIG 30 and Investment Friends
Assuming the 90 days trading horizon WIG 30 is expected to generate 42.14 times less return on investment than Investment Friends. But when comparing it to its historical volatility, WIG 30 is 42.53 times less risky than Investment Friends. It trades about 0.05 of its potential returns per unit of risk. Investment Friends Capital is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 102.00 in Investment Friends Capital on September 2, 2024 and sell it today you would earn a total of 428.00 from holding Investment Friends Capital or generate 419.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 72.38% |
| Values | Daily Returns |
WIG 30 vs. Investment Friends Capital
Performance |
| Timeline |
WIG 30 and Investment Friends Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Investment Friends Capital
Pair trading matchups for Investment Friends
Pair Trading with WIG 30 and Investment Friends
The main advantage of trading using opposite WIG 30 and Investment Friends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Investment Friends 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 Investment Friends will offset losses from the drop in Investment Friends' 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 |
| Investment Friends vs. Asseco Business Solutions | Investment Friends vs. Detalion Games SA | Investment Friends vs. Asseco South Eastern | Investment Friends vs. CFI Holding 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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