Correlation Between ING Groep and Ferrovial

Can any of the company-specific risk be diversified away by investing in both ING Groep and Ferrovial 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 ING Groep and Ferrovial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ING Groep NV and Ferrovial SE, you can compare the effects of market volatilities on ING Groep and Ferrovial 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 ING Groep with a short position of Ferrovial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Groep and Ferrovial.

Diversification Opportunities for ING Groep and Ferrovial

0.0

Correlation Coefficient

ING Groep  Ferrovial

Pay attention - limited upside

The 3 months correlation between ING and Ferrovial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ING Groep NV and Ferrovial SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferrovial SE and ING Groep 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 ING Groep NV are associated (or correlated) with Ferrovial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferrovial SE has no effect on the direction of ING Groep i.e., ING Groep and Ferrovial go up and down completely randomly.

Pair Corralation between ING Groep and Ferrovial

If you would invest  1,584  in ING Groep NV on April 16, 2025 and sell it today you would earn a total of  352.00  from holding ING Groep NV or generate 22.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ING Groep NV  vs.  Ferrovial SE

ING Groep NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ING Groep NV are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ING Groep unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ferrovial SE

Risk-Adjusted Performance

OK

Over the last 90 days Ferrovial SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ferrovial is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ING Groep and Ferrovial

The main advantage of trading using opposite ING Groep and Ferrovial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Groep position performs unexpectedly, Ferrovial 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 Ferrovial will offset losses from the drop in Ferrovial's long position.

The idea behind ING Groep NV and Ferrovial SE 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.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.