Correlation Between ING Bank and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both ING Bank and Igoria Trade 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 Igoria Trade 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 Igoria Trade SA, you can compare the effects of market volatilities on ING Bank and Igoria Trade 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 Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and Igoria Trade.
Diversification Opportunities for ING Bank and Igoria Trade
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ING and Igoria is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and Igoria Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Igoria Trade 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 Igoria Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Igoria Trade SA has no effect on the direction of ING Bank i.e., ING Bank and Igoria Trade go up and down completely randomly.
Pair Corralation between ING Bank and Igoria Trade
Assuming the 90 days trading horizon ING Bank lski is expected to generate 0.71 times more return on investment than Igoria Trade. However, ING Bank lski is 1.41 times less risky than Igoria Trade. It trades about 0.09 of its potential returns per unit of risk. Igoria Trade SA is currently generating about -0.04 per unit of risk. If you would invest 25,350 in ING Bank lski on October 26, 2024 and sell it today you would earn a total of 2,450 from holding ING Bank lski or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Bank lski vs. Igoria Trade SA
Performance |
| Timeline |
| ING Bank lski |
| Igoria Trade SA |
ING Bank and Igoria Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and Igoria Trade
The main advantage of trading using opposite ING Bank and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, Igoria Trade 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 Igoria Trade will offset losses from the drop in Igoria Trade's long position.| ING Bank vs. New Tech Venture | ING Bank vs. Globe Trade Centre | ING Bank vs. MW Trade SA | ING Bank vs. Vivid Games SA |
| Igoria Trade vs. PMPG Polskie Media | Igoria Trade vs. LSI Software SA | Igoria Trade vs. SOFTWARE MANSION SPOLKA | Igoria Trade vs. Quantum Software 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |