Correlation Between WIG 30 and Reinhold Europe
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By analyzing existing cross correlation between WIG 30 and Reinhold Europe AB, you can compare the effects of market volatilities on WIG 30 and Reinhold Europe 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 Reinhold Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Reinhold Europe.
Diversification Opportunities for WIG 30 and Reinhold Europe
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WIG and Reinhold is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Reinhold Europe AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinhold Europe AB 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 Reinhold Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinhold Europe AB has no effect on the direction of WIG 30 i.e., WIG 30 and Reinhold Europe go up and down completely randomly.
Pair Corralation between WIG 30 and Reinhold Europe
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.7 times more return on investment than Reinhold Europe. However, WIG 30 is 1.43 times less risky than Reinhold Europe. It trades about -0.03 of its potential returns per unit of risk. Reinhold Europe AB is currently generating about -0.22 per unit of risk. If you would invest 283,135 in WIG 30 on August 31, 2024 and sell it today you would lose (3,084) from holding WIG 30 or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
WIG 30 vs. Reinhold Europe AB
Performance |
| Timeline |
WIG 30 and Reinhold Europe Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
Reinhold Europe AB
Pair trading matchups for Reinhold Europe
Pair Trading with WIG 30 and Reinhold Europe
The main advantage of trading using opposite WIG 30 and Reinhold Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Reinhold Europe 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 Reinhold Europe will offset losses from the drop in Reinhold Europe's 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 |
| Reinhold Europe vs. mBank SA | Reinhold Europe vs. Medicalg | Reinhold Europe vs. SOFTWARE MANSION SPOLKA | Reinhold Europe vs. Mlk Foods Public |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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