Correlation Between Vivid Games and ING Bank
Can any of the company-specific risk be diversified away by investing in both Vivid Games 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 Vivid Games and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivid Games SA and ING Bank lski, you can compare the effects of market volatilities on Vivid Games 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 Vivid Games with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivid Games and ING Bank.
Diversification Opportunities for Vivid Games and ING Bank
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vivid and ING is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Vivid Games 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 Vivid Games 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 Vivid Games 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 Vivid Games i.e., Vivid Games and ING Bank go up and down completely randomly.
Pair Corralation between Vivid Games and ING Bank
Assuming the 90 days trading horizon Vivid Games is expected to generate 48.4 times less return on investment than ING Bank. In addition to that, Vivid Games is 1.22 times more volatile than ING Bank lski. It trades about 0.01 of its total potential returns per unit of risk. ING Bank lski is currently generating about 0.53 per unit of volatility. If you would invest 24,250 in ING Bank lski on October 26, 2024 and sell it today you would earn a total of 3,550 from holding ING Bank lski or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivid Games SA vs. ING Bank lski
Performance |
| Timeline |
| Vivid Games SA |
| ING Bank lski |
Vivid Games and ING Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivid Games and ING Bank
The main advantage of trading using opposite Vivid Games and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivid Games 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.| Vivid Games vs. Igoria Trade SA | Vivid Games vs. UniCredit SpA | Vivid Games vs. MW Trade SA | Vivid Games vs. Echo Investment SA |
| ING Bank vs. New Tech Venture | ING Bank vs. Globe Trade Centre | ING Bank vs. MW Trade SA | ING Bank vs. Vivid Games 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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