Correlation Between Marie Brizard and ING Bank
Can any of the company-specific risk be diversified away by investing in both Marie Brizard 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 Marie Brizard and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marie Brizard Wine and ING Bank lski, you can compare the effects of market volatilities on Marie Brizard 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 Marie Brizard with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marie Brizard and ING Bank.
Diversification Opportunities for Marie Brizard and ING Bank
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marie and ING is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Marie Brizard Wine 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 Marie Brizard 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 Marie Brizard Wine 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 Marie Brizard i.e., Marie Brizard and ING Bank go up and down completely randomly.
Pair Corralation between Marie Brizard and ING Bank
Assuming the 90 days trading horizon Marie Brizard is expected to generate 1.53 times less return on investment than ING Bank. In addition to that, Marie Brizard is 1.3 times more volatile than ING Bank lski. It trades about 0.03 of its total potential returns per unit of risk. ING Bank lski is currently generating about 0.07 per unit of volatility. If you would invest 15,823 in ING Bank lski on November 28, 2024 and sell it today you would earn a total of 13,127 from holding ING Bank lski or generate 82.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marie Brizard Wine vs. ING Bank lski
Performance |
| Timeline |
| Marie Brizard Wine |
| ING Bank lski |
Marie Brizard and ING Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marie Brizard and ING Bank
The main advantage of trading using opposite Marie Brizard and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marie Brizard 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.| Marie Brizard vs. Inter Cars SA | Marie Brizard vs. Movie Games SA | Marie Brizard vs. Santander Bank Polska | Marie Brizard vs. GreenX Metals |
| ING Bank vs. Enter Air SA | ING Bank vs. GreenX Metals | ING Bank vs. X Trade Brokers | ING Bank vs. Mercator Medical 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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