Correlation Between ING Bank and Astarta Holding
Can any of the company-specific risk be diversified away by investing in both ING Bank and Astarta Holding 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 Astarta Holding 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 Astarta Holding NV, you can compare the effects of market volatilities on ING Bank and Astarta Holding 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 Astarta Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and Astarta Holding.
Diversification Opportunities for ING Bank and Astarta Holding
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ING and Astarta is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and Astarta Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astarta Holding NV 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 Astarta Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astarta Holding NV has no effect on the direction of ING Bank i.e., ING Bank and Astarta Holding go up and down completely randomly.
Pair Corralation between ING Bank and Astarta Holding
Assuming the 90 days trading horizon ING Bank lski is expected to under-perform the Astarta Holding. But the stock apears to be less risky and, when comparing its historical volatility, ING Bank lski is 1.04 times less risky than Astarta Holding. The stock trades about -0.1 of its potential returns per unit of risk. The Astarta Holding NV is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,885 in Astarta Holding NV on September 3, 2024 and sell it today you would earn a total of 865.00 from holding Astarta Holding NV or generate 29.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Bank lski vs. Astarta Holding NV
Performance |
| Timeline |
| ING Bank lski |
| Astarta Holding NV |
ING Bank and Astarta Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and Astarta Holding
The main advantage of trading using opposite ING Bank and Astarta Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, Astarta Holding 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 Astarta Holding will offset losses from the drop in Astarta Holding's long position.| ING Bank vs. UniCredit SpA | ING Bank vs. Santander Bank Polska | ING Bank vs. Bank Polska Kasa | ING Bank vs. Bank Handlowy w |
| Astarta Holding vs. GreenX Metals | Astarta Holding vs. Gamedust SA | Astarta Holding vs. ING Bank lski | Astarta Holding vs. Varsav Game Studios |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |