Correlation Between WIG 30 and Neuca SA
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By analyzing existing cross correlation between WIG 30 and Neuca SA, you can compare the effects of market volatilities on WIG 30 and Neuca 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 Neuca SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Neuca SA.
Diversification Opportunities for WIG 30 and Neuca SA
Poor diversification
The 3 months correlation between WIG and Neuca is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Neuca SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuca 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 Neuca SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuca SA has no effect on the direction of WIG 30 i.e., WIG 30 and Neuca SA go up and down completely randomly.
Pair Corralation between WIG 30 and Neuca SA
Assuming the 90 days trading horizon WIG 30 is expected to generate 1.03 times less return on investment than Neuca SA. But when comparing it to its historical volatility, WIG 30 is 1.42 times less risky than Neuca SA. It trades about 0.05 of its potential returns per unit of risk. Neuca SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 60,811 in Neuca SA on September 3, 2024 and sell it today you would earn a total of 17,189 from holding Neuca SA or generate 28.27% 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. Neuca SA
Performance |
| Timeline |
WIG 30 and Neuca SA Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Neuca SA
Pair trading matchups for Neuca SA
Pair Trading with WIG 30 and Neuca SA
The main advantage of trading using opposite WIG 30 and Neuca SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Neuca 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 Neuca SA will offset losses from the drop in Neuca SA's long position.| WIG 30 vs. Biztech Konsulting SA | WIG 30 vs. ING Bank lski | WIG 30 vs. Marie Brizard Wine | WIG 30 vs. Kool2play SA |
| Neuca SA vs. Banco Santander SA | Neuca SA vs. UniCredit SpA | Neuca SA vs. CEZ as | Neuca SA vs. Polski Koncern Naftowy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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