Correlation Between Logintrade and ING Bank
Can any of the company-specific risk be diversified away by investing in both Logintrade and ING Bank 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 Logintrade and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logintrade SA and ING Bank lski, you can compare the effects of market volatilities on Logintrade and ING Bank 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 Logintrade with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logintrade and ING Bank.
Diversification Opportunities for Logintrade and ING Bank
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Logintrade and ING is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Logintrade SA and ING Bank lski in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING Bank lski and Logintrade 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 Logintrade SA are associated (or correlated) with ING Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING Bank lski has no effect on the direction of Logintrade i.e., Logintrade and ING Bank go up and down completely randomly.
Pair Corralation between Logintrade and ING Bank
Assuming the 90 days trading horizon Logintrade SA is expected to generate 1.74 times more return on investment than ING Bank. However, Logintrade is 1.74 times more volatile than ING Bank lski. It trades about 0.23 of its potential returns per unit of risk. ING Bank lski is currently generating about -0.24 per unit of risk. If you would invest 314.00 in Logintrade SA on August 30, 2024 and sell it today you would earn a total of 34.00 from holding Logintrade SA or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.0% |
| Values | Daily Returns |
Logintrade SA vs. ING Bank lski
Performance |
| Timeline |
| Logintrade SA |
| ING Bank lski |
Logintrade and ING Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logintrade and ING Bank
The main advantage of trading using opposite Logintrade and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logintrade position performs unexpectedly, ING Bank 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 ING Bank will offset losses from the drop in ING Bank's long position.| Logintrade vs. Banco Santander SA | Logintrade vs. UniCredit SpA | Logintrade vs. CEZ as | Logintrade vs. Polski Koncern Naftowy |
| ING Bank vs. Logintrade SA | ING Bank vs. True Games Syndicate | ING Bank vs. Detalion Games SA | ING Bank vs. Carlson Investments 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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