Correlation Between ING Bank and Stalexport Autostrady
Can any of the company-specific risk be diversified away by investing in both ING Bank and Stalexport Autostrady 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 Stalexport Autostrady 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 Stalexport Autostrady SA, you can compare the effects of market volatilities on ING Bank and Stalexport Autostrady 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 Stalexport Autostrady. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and Stalexport Autostrady.
Diversification Opportunities for ING Bank and Stalexport Autostrady
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ING and Stalexport is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and Stalexport Autostrady SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stalexport Autostrady 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 Stalexport Autostrady. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stalexport Autostrady has no effect on the direction of ING Bank i.e., ING Bank and Stalexport Autostrady go up and down completely randomly.
Pair Corralation between ING Bank and Stalexport Autostrady
Assuming the 90 days trading horizon ING Bank lski is expected to under-perform the Stalexport Autostrady. In addition to that, ING Bank is 1.73 times more volatile than Stalexport Autostrady SA. It trades about -0.01 of its total potential returns per unit of risk. Stalexport Autostrady SA is currently generating about 0.24 per unit of volatility. If you would invest 274.00 in Stalexport Autostrady SA on September 13, 2024 and sell it today you would earn a total of 19.00 from holding Stalexport Autostrady SA or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ING Bank lski vs. Stalexport Autostrady SA
Performance |
| Timeline |
| ING Bank lski |
| Stalexport Autostrady |
ING Bank and Stalexport Autostrady Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and Stalexport Autostrady
The main advantage of trading using opposite ING Bank and Stalexport Autostrady positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, Stalexport Autostrady 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 Stalexport Autostrady will offset losses from the drop in Stalexport Autostrady'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 |
| Stalexport Autostrady vs. ING Bank lski | Stalexport Autostrady vs. Echo Investment SA | Stalexport Autostrady vs. Alior Bank SA | Stalexport Autostrady vs. SOFTWARE MANSION SPOLKA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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