Correlation Between ING Group and Canadian Imperial
Can any of the company-specific risk be diversified away by investing in both ING Group and Canadian Imperial 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 Group and Canadian Imperial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ING Group NV and Canadian Imperial Bank, you can compare the effects of market volatilities on ING Group and Canadian Imperial 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 Group with a short position of Canadian Imperial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Group and Canadian Imperial.
Diversification Opportunities for ING Group and Canadian Imperial
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ING and Canadian is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ING Group NV and Canadian Imperial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Imperial Bank and ING Group 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 Group NV are associated (or correlated) with Canadian Imperial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Imperial Bank has no effect on the direction of ING Group i.e., ING Group and Canadian Imperial go up and down completely randomly.
Pair Corralation between ING Group and Canadian Imperial
Considering the 90-day investment horizon ING Group NV is expected to generate 1.1 times more return on investment than Canadian Imperial. However, ING Group is 1.1 times more volatile than Canadian Imperial Bank. It trades about 0.11 of its potential returns per unit of risk. Canadian Imperial Bank is currently generating about -0.02 per unit of risk. If you would invest 1,572 in ING Group NV on November 18, 2024 and sell it today you would earn a total of 139.00 from holding ING Group NV or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ING Group NV vs. Canadian Imperial Bank
Performance |
| Timeline |
| ING Group NV |
| Canadian Imperial Bank |
ING Group and Canadian Imperial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Group and Canadian Imperial
The main advantage of trading using opposite ING Group and Canadian Imperial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Group position performs unexpectedly, Canadian Imperial 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 Canadian Imperial will offset losses from the drop in Canadian Imperial's long position.| ING Group vs. Natwest Group PLC | ING Group vs. HSBC Holdings PLC | ING Group vs. Banco Santander SA | ING Group vs. UBS Group AG |
| Canadian Imperial vs. Bank of Montreal | Canadian Imperial vs. Toronto Dominion Bank | Canadian Imperial vs. Royal Bank of | Canadian Imperial vs. Citigroup |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stocks Directory Find actively traded stocks across global markets |