Correlation Between WIG 30 and PMPG Polskie
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By analyzing existing cross correlation between WIG 30 and PMPG Polskie Media, you can compare the effects of market volatilities on WIG 30 and PMPG Polskie 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 PMPG Polskie. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and PMPG Polskie.
Diversification Opportunities for WIG 30 and PMPG Polskie
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WIG and PMPG is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and PMPG Polskie Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PMPG Polskie Media 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 PMPG Polskie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PMPG Polskie Media has no effect on the direction of WIG 30 i.e., WIG 30 and PMPG Polskie go up and down completely randomly.
Pair Corralation between WIG 30 and PMPG Polskie
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.29 times more return on investment than PMPG Polskie. However, WIG 30 is 3.45 times less risky than PMPG Polskie. It trades about -0.1 of its potential returns per unit of risk. PMPG Polskie Media is currently generating about -0.28 per unit of risk. If you would invest 289,657 in WIG 30 on August 30, 2024 and sell it today you would lose (9,050) from holding WIG 30 or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
WIG 30 vs. PMPG Polskie Media
Performance |
| Timeline |
WIG 30 and PMPG Polskie Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
PMPG Polskie Media
Pair trading matchups for PMPG Polskie
Pair Trading with WIG 30 and PMPG Polskie
The main advantage of trading using opposite WIG 30 and PMPG Polskie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, PMPG Polskie 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 PMPG Polskie will offset losses from the drop in PMPG Polskie's long position.| WIG 30 vs. UF Games SA | WIG 30 vs. Intersport Polska SA | WIG 30 vs. PZ Cormay SA | WIG 30 vs. Mlk Foods Public |
| PMPG Polskie vs. Skyline Investment SA | PMPG Polskie vs. Saule Technologies SA | PMPG Polskie vs. Carlson Investments SA | PMPG Polskie vs. Inter Cars 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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