Correlation Between Global Gold and Ing Series
Can any of the company-specific risk be diversified away by investing in both Global Gold 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 Global Gold and Ing Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Ing Series Fund, you can compare the effects of market volatilities on Global Gold 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 Global Gold with a short position of Ing Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Ing Series.
Diversification Opportunities for Global Gold and Ing Series
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Ing is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund 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 Global Gold 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 Global Gold Fund 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 Global Gold i.e., Global Gold and Ing Series go up and down completely randomly.
Pair Corralation between Global Gold and Ing Series
Assuming the 90 days horizon Global Gold Fund is expected to generate 1.89 times more return on investment than Ing Series. However, Global Gold is 1.89 times more volatile than Ing Series Fund. It trades about 0.07 of its potential returns per unit of risk. Ing Series Fund is currently generating about -0.11 per unit of risk. If you would invest 1,265 in Global Gold Fund on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Global Gold Fund or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Gold Fund vs. Ing Series Fund
Performance |
| Timeline |
| Global Gold Fund |
| Ing Series Fund |
Global Gold and Ing Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Ing Series
The main advantage of trading using opposite Global Gold and Ing Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold 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.| Global Gold vs. Technology Ultrasector Profund | Global Gold vs. Towpath Technology | Global Gold vs. Columbia Global Technology | Global Gold vs. Goldman Sachs Technology |
| Ing Series vs. Pimco Diversified Income | Ing Series vs. Pioneer Diversified High | Ing Series vs. Davenport Small Cap | Ing Series vs. Adams Diversified Equity |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |