Correlation Between ING Bank and Immobile
Can any of the company-specific risk be diversified away by investing in both ING Bank and Immobile 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 Immobile 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 Immobile, you can compare the effects of market volatilities on ING Bank and Immobile 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 Immobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and Immobile.
Diversification Opportunities for ING Bank and Immobile
Very weak diversification
The 3 months correlation between ING and Immobile is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and Immobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immobile 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 Immobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immobile has no effect on the direction of ING Bank i.e., ING Bank and Immobile go up and down completely randomly.
Pair Corralation between ING Bank and Immobile
Assuming the 90 days trading horizon ING Bank lski is expected to generate 0.75 times more return on investment than Immobile. However, ING Bank lski is 1.33 times less risky than Immobile. It trades about 0.0 of its potential returns per unit of risk. Immobile is currently generating about -0.04 per unit of risk. If you would invest 30,150 in ING Bank lski on November 28, 2024 and sell it today you would lose (1,200) from holding ING Bank lski or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Bank lski vs. Immobile
Performance |
| Timeline |
| ING Bank lski |
| Immobile |
ING Bank and Immobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and Immobile
The main advantage of trading using opposite ING Bank and Immobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, Immobile 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 Immobile will offset losses from the drop in Immobile's long position.| ING Bank vs. Enter Air SA | ING Bank vs. GreenX Metals | ING Bank vs. X Trade Brokers | ING Bank vs. Mercator Medical SA |
| Immobile vs. Medicalg | Immobile vs. Quantum Software SA | Immobile vs. Monnari Trade SA | Immobile vs. PLAYWAY 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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