Correlation Between Bank Ochrony and ING Bank
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bank Ochrony rodowiska vs. ING Bank lski
Performance |
Timeline |
Bank Ochrony rodowiska |
ING Bank lski |
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.Bank Ochrony vs. Carlson Investments SA | Bank Ochrony vs. Mlk Foods Public | Bank Ochrony vs. Quantum Software SA | Bank Ochrony vs. Road Studio SA |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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