Correlation Between Bank Ochrony and ING Bank

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Can any of the company-specific risk be diversified away by investing in both Bank Ochrony 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 Bank Ochrony and ING Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Ochrony rodowiska and ING Bank lski, you can compare the effects of market volatilities on Bank Ochrony 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 Bank Ochrony with a short position of ING Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ochrony and ING Bank.

Diversification Opportunities for Bank Ochrony and ING Bank

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between Bank and ING is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ochrony rodowiska 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 Bank Ochrony 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 Bank Ochrony rodowiska 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 Bank Ochrony i.e., Bank Ochrony and ING Bank go up and down completely randomly.

Pair Corralation between Bank Ochrony and ING Bank

Assuming the 90 days trading horizon Bank Ochrony rodowiska is expected to under-perform the ING Bank. In addition to that, Bank Ochrony is 1.0 times more volatile than ING Bank lski. It trades about -0.03 of its total potential returns per unit of risk. ING Bank lski is currently generating about 0.04 per unit of volatility. If you would invest  31,452  in ING Bank lski on April 23, 2025 and sell it today you would earn a total of  798.00  from holding ING Bank lski or generate 2.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bank Ochrony rodowiska  vs.  ING Bank lski

 Performance 
       Timeline  
Bank Ochrony rodowiska 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Bank Ochrony rodowiska has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Bank Ochrony is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
ING Bank lski 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ING Bank lski are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, ING Bank is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Bank Ochrony and ING Bank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bank Ochrony and ING Bank

The main advantage of trading using opposite Bank Ochrony and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ochrony 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.
The idea behind Bank Ochrony rodowiska and ING Bank lski pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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