Correlation Between TEN SQUARE and ING Bank
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE 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 TEN SQUARE and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and ING Bank lski, you can compare the effects of market volatilities on TEN SQUARE 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 TEN SQUARE with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and ING Bank.
Diversification Opportunities for TEN SQUARE and ING Bank
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TEN and ING is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES 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 TEN SQUARE 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 TEN SQUARE GAMES 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 TEN SQUARE i.e., TEN SQUARE and ING Bank go up and down completely randomly.
Pair Corralation between TEN SQUARE and ING Bank
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to under-perform the ING Bank. In addition to that, TEN SQUARE is 1.46 times more volatile than ING Bank lski. It trades about -0.09 of its total potential returns per unit of risk. ING Bank lski is currently generating about -0.12 per unit of volatility. If you would invest 25,550 in ING Bank lski on August 26, 2024 and sell it today you would lose (1,050) from holding ING Bank lski or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. ING Bank lski
Performance |
| Timeline |
| TEN SQUARE GAMES |
| ING Bank lski |
TEN SQUARE and ING Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and ING Bank
The main advantage of trading using opposite TEN SQUARE and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE 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.| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. 11 bit studios | TEN SQUARE vs. Movie Games SA | TEN SQUARE vs. Ultimate Games SA |
| ING Bank vs. X Trade Brokers | ING Bank vs. Mercator Medical SA | ING Bank vs. Igoria Trade SA | ING Bank vs. Medicalg |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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