Correlation Between WIG 30 and KL Technology
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By analyzing existing cross correlation between WIG 30 and KL Technology, you can compare the effects of market volatilities on WIG 30 and KL Technology 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 KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and KL Technology.
Diversification Opportunities for WIG 30 and KL Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIG and KLTE is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology 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 KL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KL Technology has no effect on the direction of WIG 30 i.e., WIG 30 and KL Technology go up and down completely randomly.
Pair Corralation between WIG 30 and KL Technology
Assuming the 90 days trading horizon WIG 30 is expected to generate 1.35 times more return on investment than KL Technology. However, WIG 30 is 1.35 times more volatile than KL Technology. It trades about 0.06 of its potential returns per unit of risk. KL Technology is currently generating about -0.04 per unit of risk. If you would invest 302,639 in WIG 30 on January 30, 2024 and sell it today you would earn a total of 3,858 from holding WIG 30 or generate 1.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.0% |
Values | Daily Returns |
WIG 30 vs. KL Technology
Performance |
Timeline |
WIG 30 and KL Technology Volatility Contrast
Predicted Return Density |
Returns |
WIG 30
Pair trading matchups for WIG 30
KL Technology
Pair trading matchups for KL Technology
Pair Trading with WIG 30 and KL Technology
The main advantage of trading using opposite WIG 30 and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, KL Technology 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 KL Technology will offset losses from the drop in KL Technology's long position.WIG 30 vs. SOFTWARE MANSION SPOLKA | WIG 30 vs. Carlson Investments SA | WIG 30 vs. LSI Software SA | WIG 30 vs. Santander Bank Polska |
KL Technology vs. Melewar Industrial Group | KL Technology vs. CB Industrial Product | KL Technology vs. Uchi Technologies Bhd | KL Technology vs. Sapura Industrial Bhd |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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