Correlation Between Poznanska Korporacja and ING Bank

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

Diversification Opportunities for Poznanska Korporacja and ING Bank

PoznanskaINGDiversified AwayPoznanskaINGDiversified Away100%
0.57
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Poznanska and ING is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Poznanska Korporacja Budowlana 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 Poznanska Korporacja 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 Poznanska Korporacja Budowlana 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 Poznanska Korporacja i.e., Poznanska Korporacja and ING Bank go up and down completely randomly.

Pair Corralation between Poznanska Korporacja and ING Bank

Assuming the 90 days trading horizon Poznanska Korporacja Budowlana is expected to generate 0.89 times more return on investment than ING Bank. However, Poznanska Korporacja Budowlana is 1.12 times less risky than ING Bank. It trades about 0.15 of its potential returns per unit of risk. ING Bank lski is currently generating about 0.09 per unit of risk. If you would invest  1,770  in Poznanska Korporacja Budowlana on November 24, 2024 and sell it today you would earn a total of  150.00  from holding Poznanska Korporacja Budowlana or generate 8.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Poznanska Korporacja Budowlana  vs.  ING Bank lski

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-505
JavaScript chart by amCharts 3.21.15PBX ING
       Timeline  
Poznanska Korporacja 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Poznanska Korporacja Budowlana are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Poznanska Korporacja is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb161718192021
ING Bank lski 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ING Bank lski are ranked lower than 13 (%) 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.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb230240250260270280290300310

Poznanska Korporacja and ING Bank Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.62-2.71-1.8-0.89-0.01490.851.742.633.524.42 0.0500.0550.0600.0650.0700.075
JavaScript chart by amCharts 3.21.15PBX ING
       Returns  

Pair Trading with Poznanska Korporacja and ING Bank

The main advantage of trading using opposite Poznanska Korporacja and ING Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poznanska Korporacja 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 Poznanska Korporacja Budowlana 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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