Correlation Between Applied Finance and Ing Series
Can any of the company-specific risk be diversified away by investing in both Applied Finance and Ing Series 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 Applied Finance and Ing Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Finance Explorer and Ing Series Fund, you can compare the effects of market volatilities on Applied Finance and Ing Series 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 Applied Finance with a short position of Ing Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Finance and Ing Series.
Diversification Opportunities for Applied Finance and Ing Series
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Applied and Ing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Applied Finance Explorer and Ing Series Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Series Fund and Applied Finance 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 Applied Finance Explorer are associated (or correlated) with Ing Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Series Fund has no effect on the direction of Applied Finance i.e., Applied Finance and Ing Series go up and down completely randomly.
Pair Corralation between Applied Finance and Ing Series
Assuming the 90 days horizon Applied Finance Explorer is expected to under-perform the Ing Series. But the mutual fund apears to be less risky and, when comparing its historical volatility, Applied Finance Explorer is 1.13 times less risky than Ing Series. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Ing Series Fund is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,486 in Ing Series Fund on September 13, 2024 and sell it today you would lose (15.00) from holding Ing Series Fund or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Finance Explorer vs. Ing Series Fund
Performance |
| Timeline |
| Applied Finance Explorer |
| Ing Series Fund |
Applied Finance and Ing Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Finance and Ing Series
The main advantage of trading using opposite Applied Finance and Ing Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Finance position performs unexpectedly, Ing Series 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 Series will offset losses from the drop in Ing Series' long position.| Applied Finance vs. Thrivent Small Cap | Applied Finance vs. Parnassus Endeavor Fund | Applied Finance vs. Queens Road Small | Applied Finance vs. Oberweis Small Cap Opportunities |
| Ing Series vs. Counterpoint Tactical Municipal | Ing Series vs. T Rowe Price | Ing Series vs. Ishares Municipal Bond | Ing Series vs. Blrc Sgy Mnp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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