Correlation Between ING Bank and Jastrzebska Spotka
Can any of the company-specific risk be diversified away by investing in both ING Bank and Jastrzebska Spotka 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 Jastrzebska Spotka 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 Jastrzebska Spotka Weglowa, you can compare the effects of market volatilities on ING Bank and Jastrzebska Spotka 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 Jastrzebska Spotka. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and Jastrzebska Spotka.
Diversification Opportunities for ING Bank and Jastrzebska Spotka
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ING and Jastrzebska is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and Jastrzebska Spotka Weglowa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jastrzebska Spotka 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 Jastrzebska Spotka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jastrzebska Spotka has no effect on the direction of ING Bank i.e., ING Bank and Jastrzebska Spotka go up and down completely randomly.
Pair Corralation between ING Bank and Jastrzebska Spotka
Assuming the 90 days trading horizon ING Bank lski is expected to generate 0.73 times more return on investment than Jastrzebska Spotka. However, ING Bank lski is 1.37 times less risky than Jastrzebska Spotka. It trades about 0.33 of its potential returns per unit of risk. Jastrzebska Spotka Weglowa is currently generating about 0.13 per unit of risk. If you would invest 25,100 in ING Bank lski on November 4, 2024 and sell it today you would earn a total of 3,350 from holding ING Bank lski or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Bank lski vs. Jastrzebska Spotka Weglowa
Performance |
| Timeline |
| ING Bank lski |
| Jastrzebska Spotka |
ING Bank and Jastrzebska Spotka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and Jastrzebska Spotka
The main advantage of trading using opposite ING Bank and Jastrzebska Spotka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, Jastrzebska Spotka 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 Jastrzebska Spotka will offset losses from the drop in Jastrzebska Spotka's long position.| ING Bank vs. UniCredit SpA | ING Bank vs. Santander Bank Polska | ING Bank vs. Bank Polska Kasa | ING Bank vs. mBank SA |
| Jastrzebska Spotka vs. Quantum Software SA | Jastrzebska Spotka vs. UniCredit SpA | Jastrzebska Spotka vs. Bank Millennium SA | Jastrzebska Spotka vs. Alior Bank 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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