Correlation Between ING Bank and Intersport Polska
Can any of the company-specific risk be diversified away by investing in both ING Bank and Intersport 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 Intersport 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 Intersport Polska SA, you can compare the effects of market volatilities on ING Bank and Intersport 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 Intersport Polska. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and Intersport Polska.
Diversification Opportunities for ING Bank and Intersport Polska
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ING and Intersport is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and Intersport Polska SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intersport Polska 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 Intersport Polska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intersport Polska has no effect on the direction of ING Bank i.e., ING Bank and Intersport Polska go up and down completely randomly.
Pair Corralation between ING Bank and Intersport Polska
Assuming the 90 days trading horizon ING Bank lski is expected to under-perform the Intersport Polska. But the stock apears to be less risky and, when comparing its historical volatility, ING Bank lski is 2.11 times less risky than Intersport Polska. The stock trades about -0.09 of its potential returns per unit of risk. The Intersport Polska SA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 88.00 in Intersport Polska SA on September 1, 2024 and sell it today you would lose (15.00) from holding Intersport Polska SA or give up 17.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Bank lski vs. Intersport Polska SA
Performance |
| Timeline |
| ING Bank lski |
| Intersport Polska |
ING Bank and Intersport Polska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and Intersport Polska
The main advantage of trading using opposite ING Bank and Intersport Polska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, Intersport 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 Intersport Polska will offset losses from the drop in Intersport Polska's long position.| ING Bank vs. Enter Air SA | ING Bank vs. Varsav Game Studios | ING Bank vs. Globe Trade Centre | ING Bank vs. Igoria Trade SA |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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