Correlation Between Baked Games and ING Bank
Can any of the company-specific risk be diversified away by investing in both Baked Games and ING Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Baked Games and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baked Games SA and ING Bank lski, you can compare the effects of market volatilities on Baked Games and ING Bank 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 Baked Games with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baked Games and ING Bank.
Diversification Opportunities for Baked Games and ING Bank
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baked and ING is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Baked Games SA and ING Bank lski in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING Bank lski and Baked Games 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 Baked Games SA are associated (or correlated) with ING Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING Bank lski has no effect on the direction of Baked Games i.e., Baked Games and ING Bank go up and down completely randomly.
Pair Corralation between Baked Games and ING Bank
Assuming the 90 days trading horizon Baked Games SA is expected to generate 3.44 times more return on investment than ING Bank. However, Baked Games is 3.44 times more volatile than ING Bank lski. It trades about 0.19 of its potential returns per unit of risk. ING Bank lski is currently generating about -0.21 per unit of risk. If you would invest 255.00 in Baked Games SA on August 28, 2024 and sell it today you would earn a total of 55.00 from holding Baked Games SA or generate 21.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Baked Games SA vs. ING Bank lski
Performance |
| Timeline |
| Baked Games SA |
| ING Bank lski |
Baked Games and ING Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baked Games and ING Bank
The main advantage of trading using opposite Baked Games and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baked Games position performs unexpectedly, ING Bank 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 ING Bank will offset losses from the drop in ING Bank's long position.| Baked Games vs. Ice Code Games | Baked Games vs. UF Games SA | Baked Games vs. Mlk Foods Public | Baked Games vs. Kool2play 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |