Correlation Between WIG 30 and SOFTWARE MANSION
Specify exactly 2 symbols:
By analyzing existing cross correlation between WIG 30 and SOFTWARE MANSION SPOLKA, you can compare the effects of market volatilities on WIG 30 and SOFTWARE MANSION 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 SOFTWARE MANSION. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and SOFTWARE MANSION.
Diversification Opportunities for WIG 30 and SOFTWARE MANSION
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIG and SOFTWARE is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and SOFTWARE MANSION SPOLKA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFTWARE MANSION SPOLKA 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 SOFTWARE MANSION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFTWARE MANSION SPOLKA has no effect on the direction of WIG 30 i.e., WIG 30 and SOFTWARE MANSION go up and down completely randomly.
Pair Corralation between WIG 30 and SOFTWARE MANSION
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.55 times more return on investment than SOFTWARE MANSION. However, WIG 30 is 1.82 times less risky than SOFTWARE MANSION. It trades about -0.07 of its potential returns per unit of risk. SOFTWARE MANSION SPOLKA is currently generating about -0.05 per unit of risk. If you would invest 300,055 in WIG 30 on August 28, 2024 and sell it today you would lose (17,882) from holding WIG 30 or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
WIG 30 vs. SOFTWARE MANSION SPOLKA
Performance |
| Timeline |
WIG 30 and SOFTWARE MANSION Volatility Contrast
Predicted Return Density |
| Returns |
WIG 30
Pair trading matchups for WIG 30
SOFTWARE MANSION SPOLKA
Pair trading matchups for SOFTWARE MANSION
Pair Trading with WIG 30 and SOFTWARE MANSION
The main advantage of trading using opposite WIG 30 and SOFTWARE MANSION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, SOFTWARE MANSION 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 SOFTWARE MANSION will offset losses from the drop in SOFTWARE MANSION's long position.| WIG 30 vs. Igoria Trade SA | WIG 30 vs. Varsav Game Studios | WIG 30 vs. PZ Cormay SA | WIG 30 vs. Mlk Foods Public |
| SOFTWARE MANSION vs. Banco Santander SA | SOFTWARE MANSION vs. UniCredit SpA | SOFTWARE MANSION vs. CEZ as | SOFTWARE MANSION 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Directory Find actively traded commodities issued by global exchanges |