Correlation Between ING Group and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both ING Group and Credit Suisse 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 Group and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ING Group NV and Credit Suisse Group, you can compare the effects of market volatilities on ING Group and Credit Suisse 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 Group with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Group and Credit Suisse.
Diversification Opportunities for ING Group and Credit Suisse
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between ING and Credit is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ING Group NV and Credit Suisse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Group and ING Group 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 Group NV are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Group has no effect on the direction of ING Group i.e., ING Group and Credit Suisse go up and down completely randomly.
Pair Corralation between ING Group and Credit Suisse
If you would invest 89.00 in Credit Suisse Group on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Credit Suisse Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
ING Group NV vs. Credit Suisse Group
Performance |
| Timeline |
| ING Group NV |
| Credit Suisse Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ING Group and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Group and Credit Suisse
The main advantage of trading using opposite ING Group and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Group position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| ING Group vs. Natwest Group PLC | ING Group vs. HSBC Holdings PLC | ING Group vs. Banco Santander SA | ING Group vs. UBS Group AG |
| Credit Suisse vs. Barclays PLC ADR | Credit Suisse vs. HSBC Holdings PLC | Credit Suisse vs. ING Group NV | Credit Suisse vs. Citigroup |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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