Correlation Between ING Bank and 11 Bit

Can any of the company-specific risk be diversified away by investing in both ING Bank and 11 Bit 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 Bank and 11 Bit into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ING Bank lski and 11 bit studios, you can compare the effects of market volatilities on ING Bank and 11 Bit 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 Bank with a short position of 11 Bit. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Bank and 11 Bit.

Diversification Opportunities for ING Bank and 11 Bit

0.52

Correlation Coefficient

ING Bank  11 Bit

Very weak diversification

The 3 months correlation between ING and 11B is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ING Bank lski and 11 bit studios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 11 bit studios and ING Bank 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 Bank lski are associated (or correlated) with 11 Bit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 11 bit studios has no effect on the direction of ING Bank i.e., ING Bank and 11 Bit go up and down completely randomly.

Pair Corralation between ING Bank and 11 Bit

Assuming the 90 days trading horizon ING Bank lski is expected to generate 0.81 times more return on investment than 11 Bit. However, ING Bank lski is 1.23 times less risky than 11 Bit. It trades about 0.25 of its potential returns per unit of risk. 11 bit studios is currently generating about 0.19 per unit of risk. If you would invest  24,250  in ING Bank lski on December 26, 2024 and sell it today you would earn a total of  8,800  from holding ING Bank lski or generate 36.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ING Bank lski  vs.  11 bit studios

ING Bank lski

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ING Bank lski are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, ING Bank reported solid returns over the last few months and may actually be approaching a breakup point.

11 bit studios

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 11 bit studios are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, 11 Bit reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ING Bank and 11 Bit

The main advantage of trading using opposite ING Bank and 11 Bit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Bank position performs unexpectedly, 11 Bit 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 11 Bit will offset losses from the drop in 11 Bit's long position.

The idea behind ING Bank lski and 11 bit studios 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.