Correlation Between WIG 30 and UF Games
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By analyzing existing cross correlation between WIG 30 and UF Games SA, you can compare the effects of market volatilities on WIG 30 and UF Games 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 UF Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and UF Games.
Diversification Opportunities for WIG 30 and UF Games
Poor diversification
The 3 months correlation between WIG and UFG is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and UF Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UF Games 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 UF Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UF Games SA has no effect on the direction of WIG 30 i.e., WIG 30 and UF Games go up and down completely randomly.
Pair Corralation between WIG 30 and UF Games
Assuming the 90 days trading horizon WIG 30 is expected to generate 0.57 times more return on investment than UF Games. However, WIG 30 is 1.74 times less risky than UF Games. It trades about 0.01 of its potential returns per unit of risk. UF Games SA is currently generating about -0.25 per unit of risk. If you would invest 293,205 in WIG 30 on September 7, 2024 and sell it today you would earn a total of 1,212 from holding WIG 30 or generate 0.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 71.43% |
Values | Daily Returns |
WIG 30 vs. UF Games SA
Performance |
Timeline |
WIG 30 and UF Games Volatility Contrast
Predicted Return Density |
Returns |
WIG 30
Pair trading matchups for WIG 30
UF Games SA
Pair trading matchups for UF Games
Pair Trading with WIG 30 and UF Games
The main advantage of trading using opposite WIG 30 and UF Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, UF Games 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 UF Games will offset losses from the drop in UF Games' long position.The idea behind WIG 30 and UF Games SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.UF Games vs. Ultimate Games SA | UF Games vs. Marie Brizard Wine | UF Games vs. CI Games SA | UF Games vs. Carlson Investments 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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