Correlation Between ING Bank and 11 Bit
Can any of the company-specific risk be diversified away by investing in both ING Bank and 11 Bit 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 ING Bank and 11 Bit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ING Bank lski and 11 bit studios, you can compare the effects of market volatilities on ING Bank and 11 Bit 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 ING Bank with a short position of 11 Bit. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and 11 Bit.
Diversification Opportunities for ING Bank and 11 Bit
Modest diversification
The 3 months correlation between ING and 11B is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and 11 bit studios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 11 bit studios and ING Bank 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 ING Bank lski are associated (or correlated) with 11 Bit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 11 bit studios has no effect on the direction of ING Bank i.e., ING Bank and 11 Bit go up and down completely randomly.
Pair Corralation between ING Bank and 11 Bit
Assuming the 90 days trading horizon ING Bank lski is expected to generate 0.73 times more return on investment than 11 Bit. However, ING Bank lski is 1.37 times less risky than 11 Bit. It trades about 0.06 of its potential returns per unit of risk. 11 bit studios is currently generating about -0.04 per unit of risk. If you would invest 15,063 in ING Bank lski on September 12, 2024 and sell it today you would earn a total of 10,687 from holding ING Bank lski or generate 70.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Bank lski vs. 11 bit studios
Performance |
| Timeline |
| ING Bank lski |
| 11 bit studios |
ING Bank and 11 Bit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and 11 Bit
The main advantage of trading using opposite ING Bank and 11 Bit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, 11 Bit 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 11 Bit will offset losses from the drop in 11 Bit's long position.The idea behind ING Bank lski and 11 bit studios pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 11 Bit vs. True Games Syndicate | 11 Bit vs. Movie Games SA | 11 Bit vs. Detalion Games SA | 11 Bit vs. Carlson Investments 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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