Correlation Between WIG 30 and LPP SA
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By analyzing existing cross correlation between WIG 30 and LPP SA, you can compare the effects of market volatilities on WIG 30 and LPP 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 LPP SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and LPP SA.
Diversification Opportunities for WIG 30 and LPP SA
Pay attention - limited upside
The 3 months correlation between WIG and LPP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and LPP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPP 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 LPP SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LPP SA has no effect on the direction of WIG 30 i.e., WIG 30 and LPP SA go up and down completely randomly.
Pair Corralation between WIG 30 and LPP SA
Assuming the 90 days trading horizon WIG 30 is expected to generate 2.42 times less return on investment than LPP SA. But when comparing it to its historical volatility, WIG 30 is 2.41 times less risky than LPP SA. It trades about 0.05 of its potential returns per unit of risk. LPP SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 908,133 in LPP SA on August 30, 2024 and sell it today you would earn a total of 646,867 from holding LPP SA or generate 71.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIG 30 vs. LPP SA
Performance |
| Timeline |
WIG 30 and LPP SA Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
LPP SA
Pair trading matchups for LPP SA
Pair Trading with WIG 30 and LPP SA
The main advantage of trading using opposite WIG 30 and LPP SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, LPP 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 LPP SA will offset losses from the drop in LPP SA'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 |
| LPP SA vs. Monnari Trade SA | LPP SA vs. Esotiq Henderson SA | LPP SA vs. Asseco Business Solutions | LPP SA vs. Detalion Games 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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