Correlation Between WIG 30 and Kruk SA
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By analyzing existing cross correlation between WIG 30 and Kruk SA, you can compare the effects of market volatilities on WIG 30 and Kruk 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 Kruk SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Kruk SA.
Diversification Opportunities for WIG 30 and Kruk SA
Poor diversification
The 3 months correlation between WIG and Kruk is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Kruk SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kruk 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 Kruk SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kruk SA has no effect on the direction of WIG 30 i.e., WIG 30 and Kruk SA go up and down completely randomly.
Pair Corralation between WIG 30 and Kruk SA
Assuming the 90 days trading horizon WIG 30 is expected to generate 1.64 times less return on investment than Kruk SA. But when comparing it to its historical volatility, WIG 30 is 1.5 times less risky than Kruk SA. It trades about 0.04 of its potential returns per unit of risk. Kruk SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 31,856 in Kruk SA on September 1, 2024 and sell it today you would earn a total of 10,444 from holding Kruk SA or generate 32.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
WIG 30 vs. Kruk SA
Performance |
| Timeline |
WIG 30 and Kruk SA Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Kruk SA
Pair trading matchups for Kruk SA
Pair Trading with WIG 30 and Kruk SA
The main advantage of trading using opposite WIG 30 and Kruk SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Kruk 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 Kruk SA will offset losses from the drop in Kruk 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 |
| Kruk SA vs. Investment Friends Capital | Kruk SA vs. Asseco Business Solutions | Kruk SA vs. Detalion Games SA | Kruk SA vs. Asseco South Eastern |
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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