Correlation Between WIG 30 and Swiss Leader
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By analyzing existing cross correlation between WIG 30 and Swiss Leader Price, you can compare the effects of market volatilities on WIG 30 and Swiss Leader 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 Swiss Leader. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIG 30 and Swiss Leader.
Diversification Opportunities for WIG 30 and Swiss Leader
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIG and Swiss is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding WIG 30 and Swiss Leader Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Leader Price 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 Swiss Leader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Leader Price has no effect on the direction of WIG 30 i.e., WIG 30 and Swiss Leader go up and down completely randomly.
Pair Corralation between WIG 30 and Swiss Leader
Assuming the 90 days trading horizon WIG 30 is expected to under-perform the Swiss Leader. In addition to that, WIG 30 is 1.71 times more volatile than Swiss Leader Price. It trades about -0.12 of its total potential returns per unit of risk. Swiss Leader Price is currently generating about -0.08 per unit of volatility. If you would invest 201,599 in Swiss Leader Price on September 1, 2024 and sell it today you would lose (7,543) from holding Swiss Leader Price or give up 3.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.92% |
Values | Daily Returns |
WIG 30 vs. Swiss Leader Price
Performance |
Timeline |
WIG 30 and Swiss Leader Volatility Contrast
Predicted Return Density |
Returns |
WIG 30
Pair trading matchups for WIG 30
Swiss Leader Price
Pair trading matchups for Swiss Leader
Pair Trading with WIG 30 and Swiss Leader
The main advantage of trading using opposite WIG 30 and Swiss Leader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIG 30 position performs unexpectedly, Swiss Leader 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 Swiss Leader will offset losses from the drop in Swiss Leader's long position.WIG 30 vs. ING Bank lski | WIG 30 vs. LSI Software SA | WIG 30 vs. Quantum Software SA | WIG 30 vs. GreenX Metals |
Swiss Leader vs. Graubuendner Kantonalbank | Swiss Leader vs. Thurgauer Kantonalbank | Swiss Leader vs. mobilezone ag | Swiss Leader vs. Zurich Insurance Group |
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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