Correlation Between ING Groep and ANZ Group
Can any of the company-specific risk be diversified away by investing in both ING Groep and ANZ Group 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 Groep and ANZ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ING Groep NV and ANZ Group Holdings, you can compare the effects of market volatilities on ING Groep and ANZ Group 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 Groep with a short position of ANZ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Groep and ANZ Group.
Diversification Opportunities for ING Groep and ANZ Group
Average diversification
The 3 months correlation between ING and ANZ is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding ING Groep NV and ANZ Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZ Group Holdings and ING Groep 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 Groep NV are associated (or correlated) with ANZ Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZ Group Holdings has no effect on the direction of ING Groep i.e., ING Groep and ANZ Group go up and down completely randomly.
Pair Corralation between ING Groep and ANZ Group
If you would invest 1,520 in ING Groep NV on November 4, 2024 and sell it today you would earn a total of 129.00 from holding ING Groep NV or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
ING Groep NV vs. ANZ Group Holdings
Performance |
| Timeline |
| ING Groep NV |
| ANZ Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ING Groep and ANZ Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Groep and ANZ Group
The main advantage of trading using opposite ING Groep and ANZ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Groep position performs unexpectedly, ANZ Group 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 ANZ Group will offset losses from the drop in ANZ Group's long position.| ING Groep vs. Bank of America | ING Groep vs. Citigroup | ING Groep vs. Wells Fargo | ING Groep vs. Toronto Dominion Bank |
| ANZ Group vs. Braemar Hotels Resorts | ANZ Group vs. Copa Holdings SA | ANZ Group vs. SkyWest | ANZ Group vs. Dine Brands Global |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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