Correlation Between ING Groep and ASM International
Can any of the company-specific risk be diversified away by investing in both ING Groep and ASM International 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 ASM International 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 ASM International NV, you can compare the effects of market volatilities on ING Groep and ASM International 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 ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Groep and ASM International.
Diversification Opportunities for ING Groep and ASM International
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ING and ASM is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding ING Groep NV and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International 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 ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of ING Groep i.e., ING Groep and ASM International go up and down completely randomly.
Pair Corralation between ING Groep and ASM International
Assuming the 90 days trading horizon ING Groep NV is expected to generate 0.58 times more return on investment than ASM International. However, ING Groep NV is 1.73 times less risky than ASM International. It trades about 0.18 of its potential returns per unit of risk. ASM International NV is currently generating about 0.01 per unit of risk. If you would invest 1,725 in ING Groep NV on April 29, 2025 and sell it today you would earn a total of 295.00 from holding ING Groep NV or generate 17.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ING Groep NV vs. ASM International NV
Performance |
Timeline |
ING Groep NV |
ASM International |
ING Groep and ASM International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ING Groep and ASM International
The main advantage of trading using opposite ING Groep and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Groep position performs unexpectedly, ASM International 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 ASM International will offset losses from the drop in ASM International's long position.ING Groep vs. Aegon NV | ING Groep vs. ABN Amro Group | ING Groep vs. Koninklijke Philips NV | ING Groep vs. Unilever PLC |
ASM International vs. Aalberts Industries NV | ASM International vs. ASML Holding NV | ASM International vs. BE Semiconductor Industries | ASM International vs. NN Group NV |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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