Correlation Between DXC Technology and ING Groep
Can any of the company-specific risk be diversified away by investing in both DXC Technology and ING Groep 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 DXC Technology and ING Groep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology and ING Groep NV, you can compare the effects of market volatilities on DXC Technology and ING Groep 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 DXC Technology with a short position of ING Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and ING Groep.
Diversification Opportunities for DXC Technology and ING Groep
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DXC and ING is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology and ING Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING Groep NV and DXC Technology 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 DXC Technology are associated (or correlated) with ING Groep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING Groep NV has no effect on the direction of DXC Technology i.e., DXC Technology and ING Groep go up and down completely randomly.
Pair Corralation between DXC Technology and ING Groep
If you would invest 24,700 in ING Groep NV on September 1, 2024 and sell it today you would earn a total of 0.00 from holding ING Groep NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology vs. ING Groep NV
Performance |
| Timeline |
| DXC Technology |
| ING Groep NV |
DXC Technology and ING Groep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and ING Groep
The main advantage of trading using opposite DXC Technology and ING Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, ING Groep 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 Groep will offset losses from the drop in ING Groep's long position.| DXC Technology vs. The Select Sector | DXC Technology vs. Promotora y Operadora | DXC Technology vs. SPDR Series Trust | DXC Technology vs. iShares Trust |
| ING Groep vs. Micron Technology | ING Groep vs. DXC Technology | ING Groep vs. Cognizant Technology Solutions | ING Groep vs. Verizon Communications |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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