Correlation Analysis Between East West and ING Group

This module allows you to analyze existing cross correlation between East West Bancorp and ING Group N V. You can compare the effects of market volatilities on East West and ING Group 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 East West with a short position of ING Group. See also your portfolio center. Please also check ongoing floating volatility patterns of East West and ING Group.
Horizon     30 Days    Login   to change
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Comparative Performance

East West Bancorp  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in East West Bancorp are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, East West is not utilizing all of its potentials. The new stock price disturbance, may contribute to short term losses for the investors.
ING Group N  
00

Risk-Adjusted Performance

Over the last 30 days ING Group N V has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, ING Group is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.

East West and ING Group Volatility Contrast

 Predicted Return Density 
      Returns 

East West Bancorp Inc  vs.  ING Group N V

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, East West Bancorp is expected to generate 1.48 times more return on investment than ING Group. However, East West is 1.48 times more volatile than ING Group N V. It trades about 0.03 of its potential returns per unit of risk. ING Group N V is currently generating about -0.01 per unit of risk. If you would invest  4,390  in East West Bancorp on August 21, 2019 and sell it today you would earn a total of  148.00  from holding East West Bancorp or generate 3.37% return on investment over 30 days.

Pair Corralation between East West and ING Group

0.91
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for East West and ING Group

East West Bancorp Inc diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding East West Bancorp Inc and ING Group N V in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ING Group N and East West 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 East West Bancorp are associated (or correlated) with ING Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING Group N has no effect on the direction of East West i.e. East West and ING Group go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.


 
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