Correlation Between Biztech Konsulting and ING Bank
Can any of the company-specific risk be diversified away by investing in both Biztech Konsulting 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 Biztech Konsulting and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biztech Konsulting SA and ING Bank lski, you can compare the effects of market volatilities on Biztech Konsulting 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 Biztech Konsulting with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biztech Konsulting and ING Bank.
Diversification Opportunities for Biztech Konsulting and ING Bank
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biztech and ING is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Biztech Konsulting 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 Biztech Konsulting 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 Biztech Konsulting 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 Biztech Konsulting i.e., Biztech Konsulting and ING Bank go up and down completely randomly.
Pair Corralation between Biztech Konsulting and ING Bank
Assuming the 90 days trading horizon Biztech Konsulting SA is expected to under-perform the ING Bank. In addition to that, Biztech Konsulting is 2.24 times more volatile than ING Bank lski. It trades about -0.02 of its total potential returns per unit of risk. ING Bank lski is currently generating about 0.01 per unit of volatility. If you would invest 24,639 in ING Bank lski on September 4, 2024 and sell it today you would lose (539.00) from holding ING Bank lski or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.43% |
| Values | Daily Returns |
Biztech Konsulting SA vs. ING Bank lski
Performance |
| Timeline |
| Biztech Konsulting |
| ING Bank lski |
Biztech Konsulting and ING Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biztech Konsulting and ING Bank
The main advantage of trading using opposite Biztech Konsulting and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biztech Konsulting 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.| Biztech Konsulting vs. Clean Carbon Energy | Biztech Konsulting vs. ADX | Biztech Konsulting vs. Agroliga Group PLC | Biztech Konsulting vs. Vee SA |
| ING Bank vs. Biztech Konsulting SA | ING Bank vs. UniCredit SpA | ING Bank vs. M Food SA | ING Bank vs. Noble Financials 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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