Correlation Between Bank of NT and ING Group
Can any of the company-specific risk be diversified away by investing in both Bank of NT and ING 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 Bank of NT and ING Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of NT and ING Group NV, you can compare the effects of market volatilities on Bank of NT and ING 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 Bank of NT with a short position of ING Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of NT and ING Group.
Diversification Opportunities for Bank of NT and ING Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and ING is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of NT and ING Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING Group NV and Bank of NT 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 Bank of NT are associated (or correlated) with ING Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING Group NV has no effect on the direction of Bank of NT i.e., Bank of NT and ING Group go up and down completely randomly.
Pair Corralation between Bank of NT and ING Group
Considering the 90-day investment horizon Bank of NT is expected to generate 0.9 times more return on investment than ING Group. However, Bank of NT is 1.11 times less risky than ING Group. It trades about 0.24 of its potential returns per unit of risk. ING Group NV is currently generating about 0.18 per unit of risk. If you would invest 3,620 in Bank of NT on November 9, 2024 and sell it today you would earn a total of 244.00 from holding Bank of NT or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of NT vs. ING Group NV
Performance |
| Timeline |
| Bank of NT |
| ING Group NV |
Bank of NT and ING Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of NT and ING Group
The main advantage of trading using opposite Bank of NT and ING Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of NT position performs unexpectedly, ING 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 ING Group will offset losses from the drop in ING Group's long position.| Bank of NT vs. PJT Partners | Bank of NT vs. National Bank Holdings | Bank of NT vs. FB Financial Corp | Bank of NT vs. Northrim BanCorp |
| ING Group vs. Natwest Group PLC | ING Group vs. HSBC Holdings PLC | ING Group vs. Banco Santander SA | ING Group vs. UBS Group AG |
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 Stocks Directory module to find actively traded stocks across global markets.
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