Correlation Between IPC MEXICO and WIG 30
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By analyzing existing cross correlation between IPC MEXICO and WIG 30, you can compare the effects of market volatilities on IPC MEXICO 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 IPC MEXICO with a short position of WIG 30. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPC MEXICO and WIG 30.
Diversification Opportunities for IPC MEXICO and WIG 30
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IPC and WIG is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding IPC MEXICO and WIG 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIG 30 and IPC MEXICO 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 IPC MEXICO 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 IPC MEXICO i.e., IPC MEXICO and WIG 30 go up and down completely randomly.
Pair Corralation between IPC MEXICO and WIG 30
Assuming the 90 days trading horizon IPC MEXICO is expected to generate 15.35 times less return on investment than WIG 30. But when comparing it to its historical volatility, IPC MEXICO is 1.62 times less risky than WIG 30. It trades about 0.01 of its potential returns per unit of risk. WIG 30 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 299,554 in WIG 30 on February 21, 2024 and sell it today you would earn a total of 25,992 from holding WIG 30 or generate 8.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 96.77% |
Values | Daily Returns |
IPC MEXICO vs. WIG 30
Performance |
Timeline |
IPC MEXICO and WIG 30 Volatility Contrast
Predicted Return Density |
Returns |
IPC MEXICO
Pair trading matchups for IPC MEXICO
WIG 30
Pair trading matchups for WIG 30
Pair Trading with IPC MEXICO and WIG 30
The main advantage of trading using opposite IPC MEXICO and WIG 30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPC MEXICO 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.IPC MEXICO vs. McEwen Mining | IPC MEXICO vs. Southwest Airlines | IPC MEXICO vs. Grupo Sports World | IPC MEXICO vs. Prudential Financial |
WIG 30 vs. Iron Wolf Studio | WIG 30 vs. Monnari Trade SA | WIG 30 vs. MW Trade SA | WIG 30 vs. Bank Millennium 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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