Correlation Between WIG 30 and Movie Games
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By analyzing existing cross correlation between WIG 30 and Movie Games SA, you can compare the effects of market volatilities on WIG 30 and Movie Games 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 Movie Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Movie Games.
Diversification Opportunities for WIG 30 and Movie Games
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WIG and Movie is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Movie Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Games 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 Movie Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Games SA has no effect on the direction of WIG 30 i.e., WIG 30 and Movie Games go up and down completely randomly.
Pair Corralation between WIG 30 and Movie Games
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.33 times more return on investment than Movie Games. However, WIG 30 is 3.06 times less risky than Movie Games. It trades about 0.04 of its potential returns per unit of risk. Movie Games SA is currently generating about -0.01 per unit of risk. If you would invest 235,208 in WIG 30 on August 31, 2024 and sell it today you would earn a total of 44,843 from holding WIG 30 or generate 19.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIG 30 vs. Movie Games SA
Performance |
| Timeline |
WIG 30 and Movie Games Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Movie Games SA
Pair trading matchups for Movie Games
Pair Trading with WIG 30 and Movie Games
The main advantage of trading using opposite WIG 30 and Movie Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Movie Games 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 Movie Games will offset losses from the drop in Movie Games' 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 |
| Movie Games vs. CD PROJEKT SA | Movie Games vs. CI Games SA | Movie Games vs. Ultimate Games SA | Movie Games vs. Gaming Factory 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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