Correlation Between ING Bank and PLAYWAY SA
Can any of the company-specific risk be diversified away by investing in both ING Bank and PLAYWAY SA 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 PLAYWAY SA 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 PLAYWAY SA, you can compare the effects of market volatilities on ING Bank and PLAYWAY SA 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 PLAYWAY SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and PLAYWAY SA.
Diversification Opportunities for ING Bank and PLAYWAY SA
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ING and PLAYWAY is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and PLAYWAY SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWAY 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 PLAYWAY SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWAY SA has no effect on the direction of ING Bank i.e., ING Bank and PLAYWAY SA go up and down completely randomly.
Pair Corralation between ING Bank and PLAYWAY SA
Assuming the 90 days trading horizon ING Bank lski is expected to generate 1.02 times more return on investment than PLAYWAY SA. However, ING Bank is 1.02 times more volatile than PLAYWAY SA. It trades about 0.06 of its potential returns per unit of risk. PLAYWAY SA is currently generating about -0.01 per unit of risk. If you would invest 15,895 in ING Bank lski on October 14, 2024 and sell it today you would earn a total of 10,805 from holding ING Bank lski or generate 67.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Bank lski vs. PLAYWAY SA
Performance |
| Timeline |
| ING Bank lski |
| PLAYWAY SA |
ING Bank and PLAYWAY SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and PLAYWAY SA
The main advantage of trading using opposite ING Bank and PLAYWAY SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, PLAYWAY SA 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 PLAYWAY SA will offset losses from the drop in PLAYWAY SA's long position.| ING Bank vs. GreenX Metals | ING Bank vs. Globe Trade Centre | ING Bank vs. PMPG Polskie Media | ING Bank vs. Noble Financials SA |
| PLAYWAY SA vs. Alior Bank SA | PLAYWAY SA vs. ING Bank lski | PLAYWAY SA vs. Mercator Medical SA | PLAYWAY SA vs. PZ Cormay 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |