Correlation Between WIG 30 and PKP Cargo
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By analyzing existing cross correlation between WIG 30 and PKP Cargo SA, you can compare the effects of market volatilities on WIG 30 and PKP Cargo 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 PKP Cargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and PKP Cargo.
Diversification Opportunities for WIG 30 and PKP Cargo
Poor diversification
The 3 months correlation between WIG and PKP is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and PKP Cargo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKP Cargo 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 PKP Cargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKP Cargo SA has no effect on the direction of WIG 30 i.e., WIG 30 and PKP Cargo go up and down completely randomly.
Pair Corralation between WIG 30 and PKP Cargo
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.44 times more return on investment than PKP Cargo. However, WIG 30 is 2.25 times less risky than PKP Cargo. It trades about 0.05 of its potential returns per unit of risk. PKP Cargo SA is currently generating about 0.0 per unit of risk. If you would invest 217,789 in WIG 30 on September 3, 2024 and sell it today you would earn a total of 69,926 from holding WIG 30 or generate 32.11% 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. PKP Cargo SA
Performance |
| Timeline |
WIG 30 and PKP Cargo Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
PKP Cargo SA
Pair trading matchups for PKP Cargo
Pair Trading with WIG 30 and PKP Cargo
The main advantage of trading using opposite WIG 30 and PKP Cargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, PKP Cargo 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 PKP Cargo will offset losses from the drop in PKP Cargo'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 |
| PKP Cargo vs. Banco Santander SA | PKP Cargo vs. UniCredit SpA | PKP Cargo vs. CEZ as | PKP Cargo 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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