Correlation Between Aperam SA and ING Groep
Can any of the company-specific risk be diversified away by investing in both Aperam SA 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 Aperam SA and ING Groep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aperam SA and ING Groep NV, you can compare the effects of market volatilities on Aperam SA 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 Aperam SA with a short position of ING Groep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aperam SA and ING Groep.
Diversification Opportunities for Aperam SA and ING Groep
Weak diversification
The 3 months correlation between Aperam and ING is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aperam SA 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 Aperam SA 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 Aperam SA 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 Aperam SA i.e., Aperam SA and ING Groep go up and down completely randomly.
Pair Corralation between Aperam SA and ING Groep
Assuming the 90 days trading horizon Aperam SA is expected to generate 2.37 times less return on investment than ING Groep. In addition to that, Aperam SA is 1.32 times more volatile than ING Groep NV. It trades about 0.06 of its total potential returns per unit of risk. ING Groep NV is currently generating about 0.2 per unit of volatility. If you would invest 1,664 in ING Groep NV on April 24, 2025 and sell it today you would earn a total of 332.00 from holding ING Groep NV or generate 19.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aperam SA vs. ING Groep NV
Performance |
Timeline |
Aperam SA |
ING Groep NV |
Aperam SA and ING Groep Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aperam SA and ING Groep
The main advantage of trading using opposite Aperam SA and ING Groep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aperam SA 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.Aperam SA vs. ArcelorMittal SA | Aperam SA vs. NN Group NV | Aperam SA vs. SBM Offshore NV | Aperam SA vs. BE Semiconductor Industries |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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