Correlation Between Poznanska Korporacja and ING Bank
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
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Poznanska Korporacja Budowlana vs. ING Bank lski
Performance |
Timeline |
Poznanska Korporacja |
ING Bank lski |
Poznanska Korporacja and ING Bank Volatility Contrast
Predicted Return Density |
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.Poznanska Korporacja vs. Gamedust SA | ||
Poznanska Korporacja vs. Mercator Medical SA | ||
Poznanska Korporacja vs. Skyline Investment SA | ||
Poznanska Korporacja vs. Play2Chill SA |
ING Bank vs. VR Factory Games | ||
ING Bank vs. Pyramid Games SA | ||
ING Bank vs. LSI Software SA | ||
ING Bank vs. UniCredit SpA |
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.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Equity Valuation Check real value of public entities based on technical and fundamental data |