Correlation Between Swiss Leader and WIG 30
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By analyzing existing cross correlation between Swiss Leader Price and WIG 30, you can compare the effects of market volatilities on Swiss Leader and WIG 30 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 Swiss Leader with a short position of WIG 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and WIG 30.
Diversification Opportunities for Swiss Leader and WIG 30
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Swiss and WIG is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and WIG 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIG 30 and Swiss Leader 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 Swiss Leader Price are associated (or correlated) with WIG 30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIG 30 has no effect on the direction of Swiss Leader i.e., Swiss Leader and WIG 30 go up and down completely randomly.
Pair Corralation between Swiss Leader and WIG 30
Assuming the 90 days trading horizon Swiss Leader is expected to generate 3.16 times less return on investment than WIG 30. But when comparing it to its historical volatility, Swiss Leader Price is 1.85 times less risky than WIG 30. It trades about 0.1 of its potential returns per unit of risk. WIG 30 is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 232,039 in WIG 30 on January 30, 2024 and sell it today you would earn a total of 74,458 from holding WIG 30 or generate 32.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Swiss Leader Price vs. WIG 30
Performance |
Timeline |
Swiss Leader and WIG 30 Volatility Contrast
Predicted Return Density |
Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
WIG 30
Pair trading matchups for WIG 30
Pair Trading with Swiss Leader and WIG 30
The main advantage of trading using opposite Swiss Leader and WIG 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader position performs unexpectedly, WIG 30 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 WIG 30 will offset losses from the drop in WIG 30's long position.Swiss Leader vs. Cembra Money Bank | Swiss Leader vs. Softwareone Holding | Swiss Leader vs. Graubuendner Kantonalbank | Swiss Leader vs. Liechtensteinische Landesbank AG |
WIG 30 vs. Globe Trade Centre | WIG 30 vs. LSI Software SA | WIG 30 vs. SOFTWARE MANSION SPOLKA | WIG 30 vs. Play2Chill 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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