Correlation Between ING Bank and Dino Polska
Can any of the company-specific risk be diversified away by investing in both ING Bank and Dino Polska 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 Dino Polska 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 Dino Polska SA, you can compare the effects of market volatilities on ING Bank and Dino Polska 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 Dino Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and Dino Polska.
Diversification Opportunities for ING Bank and Dino Polska
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ING and Dino is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and Dino Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dino Polska 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 Dino Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dino Polska SA has no effect on the direction of ING Bank i.e., ING Bank and Dino Polska go up and down completely randomly.
Pair Corralation between ING Bank and Dino Polska
Assuming the 90 days trading horizon ING Bank lski is expected to generate 0.97 times more return on investment than Dino Polska. However, ING Bank lski is 1.03 times less risky than Dino Polska. It trades about 0.07 of its potential returns per unit of risk. Dino Polska SA is currently generating about 0.02 per unit of risk. If you would invest 15,552 in ING Bank lski on November 29, 2024 and sell it today you would earn a total of 14,398 from holding ING Bank lski or generate 92.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
ING Bank lski vs. Dino Polska SA
Performance |
| Timeline |
| ING Bank lski |
| Dino Polska SA |
ING Bank and Dino Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and Dino Polska
The main advantage of trading using opposite ING Bank and Dino Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, Dino Polska 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 Dino Polska will offset losses from the drop in Dino Polska's long position.| ING Bank vs. Ultimate Games SA | ING Bank vs. Gaming Factory SA | ING Bank vs. Skyline Investment SA | ING Bank vs. Investment Friends Capital |
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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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