Correlation Between Centrum Finansowe and ING Bank
Can any of the company-specific risk be diversified away by investing in both Centrum Finansowe 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 Centrum Finansowe and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centrum Finansowe Banku and ING Bank lski, you can compare the effects of market volatilities on Centrum Finansowe 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 Centrum Finansowe with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrum Finansowe and ING Bank.
Diversification Opportunities for Centrum Finansowe and ING Bank
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Centrum and ING is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Centrum Finansowe Banku 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 Centrum Finansowe 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 Centrum Finansowe Banku 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 Centrum Finansowe i.e., Centrum Finansowe and ING Bank go up and down completely randomly.
Pair Corralation between Centrum Finansowe and ING Bank
Assuming the 90 days trading horizon Centrum Finansowe Banku is expected to generate 1.17 times more return on investment than ING Bank. However, Centrum Finansowe is 1.17 times more volatile than ING Bank lski. It trades about 0.09 of its potential returns per unit of risk. ING Bank lski is currently generating about -0.07 per unit of risk. If you would invest 500.00 in Centrum Finansowe Banku on August 24, 2024 and sell it today you would earn a total of 60.00 from holding Centrum Finansowe Banku or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Centrum Finansowe Banku vs. ING Bank lski
Performance |
| Timeline |
| Centrum Finansowe Banku |
| ING Bank lski |
Centrum Finansowe and ING Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrum Finansowe and ING Bank
The main advantage of trading using opposite Centrum Finansowe and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrum Finansowe 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.| Centrum Finansowe vs. UniCredit SpA | Centrum Finansowe vs. Bank Millennium SA | Centrum Finansowe vs. ING Bank lski | Centrum Finansowe vs. mBank SA |
| ING Bank vs. Baked Games SA | ING Bank vs. Skyline Investment SA | ING Bank vs. CI Games SA | ING Bank vs. Intersport Polska 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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