Correlation Between WIG 30 and MCI Management
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By analyzing existing cross correlation between WIG 30 and MCI Management SA, you can compare the effects of market volatilities on WIG 30 and MCI Management 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 MCI Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and MCI Management.
Diversification Opportunities for WIG 30 and MCI Management
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WIG and MCI is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and MCI Management SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCI Management 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 MCI Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCI Management SA has no effect on the direction of WIG 30 i.e., WIG 30 and MCI Management go up and down completely randomly.
Pair Corralation between WIG 30 and MCI Management
Assuming the 90 days trading horizon WIG 30 is expected to under-perform the MCI Management. In addition to that, WIG 30 is 1.05 times more volatile than MCI Management SA. It trades about -0.03 of its total potential returns per unit of risk. MCI Management SA is currently generating about 0.04 per unit of volatility. If you would invest 2,530 in MCI Management SA on August 31, 2024 and sell it today you would earn a total of 20.00 from holding MCI Management SA or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIG 30 vs. MCI Management SA
Performance |
| Timeline |
WIG 30 and MCI Management Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
MCI Management SA
Pair trading matchups for MCI Management
Pair Trading with WIG 30 and MCI Management
The main advantage of trading using opposite WIG 30 and MCI Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, MCI Management 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 MCI Management will offset losses from the drop in MCI Management's long position.| WIG 30 vs. New Tech Venture | WIG 30 vs. Quantum Software SA | WIG 30 vs. Carlson Investments SA | WIG 30 vs. Play2Chill SA |
| MCI Management vs. Immobile | MCI Management vs. Baked Games SA | MCI Management vs. Varsav Game Studios | MCI Management vs. Echo Investment 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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