Correlation Between Skyline Investment and ING Bank
Can any of the company-specific risk be diversified away by investing in both Skyline Investment 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 Skyline Investment and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skyline Investment SA and ING Bank lski, you can compare the effects of market volatilities on Skyline Investment 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 Skyline Investment with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skyline Investment and ING Bank.
Diversification Opportunities for Skyline Investment and ING Bank
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Skyline and ING is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Skyline Investment 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 Skyline Investment 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 Skyline Investment 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 Skyline Investment i.e., Skyline Investment and ING Bank go up and down completely randomly.
Pair Corralation between Skyline Investment and ING Bank
Assuming the 90 days trading horizon Skyline Investment is expected to generate 5.9 times less return on investment than ING Bank. But when comparing it to its historical volatility, Skyline Investment SA is 1.4 times less risky than ING Bank. It trades about 0.09 of its potential returns per unit of risk. ING Bank lski is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 24,350 in ING Bank lski on November 3, 2024 and sell it today you would earn a total of 4,100 from holding ING Bank lski or generate 16.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skyline Investment SA vs. ING Bank lski
Performance |
| Timeline |
| Skyline Investment |
| ING Bank lski |
Skyline Investment and ING Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skyline Investment and ING Bank
The main advantage of trading using opposite Skyline Investment and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skyline Investment 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.| Skyline Investment vs. Quantum Software SA | Skyline Investment vs. LSI Software SA | Skyline Investment vs. Gamedust SA | Skyline Investment vs. Examobile 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |