Correlation Between ING Bank and Abak SA
Can any of the company-specific risk be diversified away by investing in both ING Bank and Abak SA 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 Abak SA 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 Abak SA, you can compare the effects of market volatilities on ING Bank and Abak SA 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 Abak SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and Abak SA.
Diversification Opportunities for ING Bank and Abak SA
Pay attention - limited upside
The 3 months correlation between ING and Abak is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and Abak SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abak SA 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 Abak SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abak SA has no effect on the direction of ING Bank i.e., ING Bank and Abak SA go up and down completely randomly.
Pair Corralation between ING Bank and Abak SA
Assuming the 90 days trading horizon ING Bank lski is expected to generate 0.26 times more return on investment than Abak SA. However, ING Bank lski is 3.79 times less risky than Abak SA. It trades about 0.26 of its potential returns per unit of risk. Abak SA is currently generating about -0.15 per unit of risk. If you would invest 26,000 in ING Bank lski on November 5, 2024 and sell it today you would earn a total of 2,450 from holding ING Bank lski or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 45.0% |
| Values | Daily Returns |
ING Bank lski vs. Abak SA
Performance |
| Timeline |
| ING Bank lski |
| Abak SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ING Bank and Abak SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and Abak SA
The main advantage of trading using opposite ING Bank and Abak SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, Abak SA 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 Abak SA will offset losses from the drop in Abak SA's long position.| ING Bank vs. UniCredit SpA | ING Bank vs. Santander Bank Polska | ING Bank vs. Bank Polska Kasa | ING Bank vs. mBank SA |
| Abak SA vs. Centrum Finansowe Banku | Abak SA vs. Logintrade SA | Abak SA vs. GreenX Metals | Abak SA vs. Monnari Trade 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |