Correlation Between Ab High and Ing Intermediate
Can any of the company-specific risk be diversified away by investing in both Ab High and Ing Intermediate 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 Ab High and Ing Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab High Income and Ing Intermediate Bond, you can compare the effects of market volatilities on Ab High and Ing Intermediate 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 Ab High with a short position of Ing Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Ing Intermediate.
Diversification Opportunities for Ab High and Ing Intermediate
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGDAX and Ing is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Ing Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Intermediate Bond and Ab High 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 Ab High Income are associated (or correlated) with Ing Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Intermediate Bond has no effect on the direction of Ab High i.e., Ab High and Ing Intermediate go up and down completely randomly.
Pair Corralation between Ab High and Ing Intermediate
Assuming the 90 days horizon Ab High Income is expected to generate 0.69 times more return on investment than Ing Intermediate. However, Ab High Income is 1.44 times less risky than Ing Intermediate. It trades about 0.17 of its potential returns per unit of risk. Ing Intermediate Bond is currently generating about 0.06 per unit of risk. If you would invest 595.00 in Ab High Income on September 2, 2024 and sell it today you would earn a total of 110.00 from holding Ab High Income or generate 18.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Ing Intermediate Bond
Performance |
| Timeline |
| Ab High Income |
| Ing Intermediate Bond |
Ab High and Ing Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Ing Intermediate
The main advantage of trading using opposite Ab High and Ing Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Ing Intermediate 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 Intermediate will offset losses from the drop in Ing Intermediate's long position.| Ab High vs. Technology Ultrasector Profund | Ab High vs. Science Technology Fund | Ab High vs. Janus Global Technology | Ab High vs. Blackrock Science Technology |
| Ing Intermediate vs. Artisan High Income | Ing Intermediate vs. Pace High Yield | Ing Intermediate vs. California High Yield Municipal | Ing Intermediate vs. Siit High Yield |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |