Correlation Between Notoria and ING Bank
Can any of the company-specific risk be diversified away by investing in both Notoria 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 Notoria and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Notoria and ING Bank lski, you can compare the effects of market volatilities on Notoria 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 Notoria with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Notoria and ING Bank.
Diversification Opportunities for Notoria and ING Bank
Excellent diversification
The 3 months correlation between Notoria and ING is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Notoria 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 Notoria 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 Notoria 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 Notoria i.e., Notoria and ING Bank go up and down completely randomly.
Pair Corralation between Notoria and ING Bank
Assuming the 90 days trading horizon Notoria is expected to generate 1.98 times more return on investment than ING Bank. However, Notoria is 1.98 times more volatile than ING Bank lski. It trades about 0.29 of its potential returns per unit of risk. ING Bank lski is currently generating about -0.17 per unit of risk. If you would invest 665.00 in Notoria on August 24, 2024 and sell it today you would earn a total of 125.00 from holding Notoria or generate 18.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Notoria vs. ING Bank lski
Performance |
| Timeline |
| Notoria |
| ING Bank lski |
Notoria and ING Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Notoria and ING Bank
The main advantage of trading using opposite Notoria and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Notoria 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.| Notoria vs. Asseco Business Solutions | Notoria vs. Detalion Games SA | Notoria vs. Asseco South Eastern | Notoria vs. CFI Holding SA |
| ING Bank vs. UniCredit SpA | ING Bank vs. Santander Bank Polska | ING Bank vs. Bank Polska Kasa | ING Bank vs. mBank 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |