Correlation Between Grupo Sports and ING Groep
Can any of the company-specific risk be diversified away by investing in both Grupo Sports and ING Groep 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 Grupo Sports and ING Groep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Sports World and ING Groep NV, you can compare the effects of market volatilities on Grupo Sports and ING Groep 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 Grupo Sports with a short position of ING Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Sports and ING Groep.
Diversification Opportunities for Grupo Sports and ING Groep
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and ING is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Sports World and ING Groep NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING Groep NV and Grupo Sports 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 Grupo Sports World are associated (or correlated) with ING Groep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING Groep NV has no effect on the direction of Grupo Sports i.e., Grupo Sports and ING Groep go up and down completely randomly.
Pair Corralation between Grupo Sports and ING Groep
Assuming the 90 days trading horizon Grupo Sports World is expected to generate 0.93 times more return on investment than ING Groep. However, Grupo Sports World is 1.07 times less risky than ING Groep. It trades about 0.08 of its potential returns per unit of risk. ING Groep NV is currently generating about 0.05 per unit of risk. If you would invest 293.00 in Grupo Sports World on September 12, 2024 and sell it today you would earn a total of 347.00 from holding Grupo Sports World or generate 118.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Sports World vs. ING Groep NV
Performance |
| Timeline |
| Grupo Sports World |
| ING Groep NV |
Grupo Sports and ING Groep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Sports and ING Groep
The main advantage of trading using opposite Grupo Sports and ING Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Sports position performs unexpectedly, ING Groep 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 Groep will offset losses from the drop in ING Groep's long position.| Grupo Sports vs. Grupo Profuturo SAB | Grupo Sports vs. Promotora y Operadora | Grupo Sports vs. Promotora y Operadora | Grupo Sports vs. The Select Sector |
| ING Groep vs. First Majestic Silver | ING Groep vs. New Oriental Education | ING Groep vs. UnitedHealth Group Incorporated | ING Groep vs. The Bank of |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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