Correlation Between WIG 30 and MLP Group
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By analyzing existing cross correlation between WIG 30 and MLP Group SA, you can compare the effects of market volatilities on WIG 30 and MLP Group 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 MLP Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and MLP Group.
Diversification Opportunities for WIG 30 and MLP Group
Very weak diversification
The 3 months correlation between WIG and MLP is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and MLP Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MLP Group 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 MLP Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MLP Group SA has no effect on the direction of WIG 30 i.e., WIG 30 and MLP Group go up and down completely randomly.
Pair Corralation between WIG 30 and MLP Group
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.64 times more return on investment than MLP Group. However, WIG 30 is 1.57 times less risky than MLP Group. It trades about 0.05 of its potential returns per unit of risk. MLP Group SA is currently generating about 0.01 per unit of risk. If you would invest 211,341 in WIG 30 on August 30, 2024 and sell it today you would earn a total of 69,266 from holding WIG 30 or generate 32.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIG 30 vs. MLP Group SA
Performance |
| Timeline |
WIG 30 and MLP Group Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
MLP Group SA
Pair trading matchups for MLP Group
Pair Trading with WIG 30 and MLP Group
The main advantage of trading using opposite WIG 30 and MLP Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, MLP Group 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 MLP Group will offset losses from the drop in MLP Group'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 |
| MLP Group vs. Globe Trade Centre | MLP Group vs. Asseco Business Solutions | MLP Group vs. Detalion Games SA | MLP Group 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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