Correlation Between ING Bank and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both ING Bank and TEN SQUARE 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 TEN SQUARE 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 TEN SQUARE GAMES, you can compare the effects of market volatilities on ING Bank and TEN SQUARE 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 TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and TEN SQUARE.
Diversification Opportunities for ING Bank and TEN SQUARE
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ING and TEN is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES 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 TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of ING Bank i.e., ING Bank and TEN SQUARE go up and down completely randomly.
Pair Corralation between ING Bank and TEN SQUARE
Assuming the 90 days trading horizon ING Bank lski is expected to generate 0.82 times more return on investment than TEN SQUARE. However, ING Bank lski is 1.22 times less risky than TEN SQUARE. It trades about 0.06 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about -0.03 per unit of risk. If you would invest 14,105 in ING Bank lski on August 30, 2024 and sell it today you would earn a total of 8,595 from holding ING Bank lski or generate 60.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Bank lski vs. TEN SQUARE GAMES
Performance |
| Timeline |
| ING Bank lski |
| TEN SQUARE GAMES |
ING Bank and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Bank and TEN SQUARE
The main advantage of trading using opposite ING Bank and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.| ING Bank vs. Logintrade SA | ING Bank vs. True Games Syndicate | ING Bank vs. Detalion Games SA | ING Bank vs. Carlson Investments SA |
| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. PLAYWAY SA | TEN SQUARE vs. 11 bit studios | TEN SQUARE vs. Movie Games 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |