Correlation Between Global Gold and Ing Intermediate
Can any of the company-specific risk be diversified away by investing in both Global Gold 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 Global Gold and Ing Intermediate 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 Intermediate Bond, you can compare the effects of market volatilities on Global Gold 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 Global Gold with a short position of Ing Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Ing Intermediate.
Diversification Opportunities for Global Gold and Ing Intermediate
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Ing is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund 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 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 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 Global Gold i.e., Global Gold and Ing Intermediate go up and down completely randomly.
Pair Corralation between Global Gold and Ing Intermediate
Assuming the 90 days horizon Global Gold Fund is expected to generate 5.48 times more return on investment than Ing Intermediate. However, Global Gold is 5.48 times more volatile than Ing Intermediate Bond. It trades about 0.09 of its potential returns per unit of risk. Ing Intermediate Bond is currently generating about 0.07 per unit of risk. If you would invest 969.00 in Global Gold Fund on September 1, 2024 and sell it today you would earn a total of 311.00 from holding Global Gold Fund or generate 32.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Global Gold Fund vs. Ing Intermediate Bond
Performance |
| Timeline |
| Global Gold Fund |
| Ing Intermediate Bond |
Global Gold and Ing Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Ing Intermediate
The main advantage of trading using opposite Global Gold and Ing Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold 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.| Global Gold vs. Legg Mason Partners | Global Gold vs. Federated Ohio Municipal | Global Gold vs. Ambrus Core Bond | Global Gold vs. Oklahoma Municipal Fund |
| Ing Intermediate vs. Deutsche Health And | Ing Intermediate vs. The Hartford Healthcare | Ing Intermediate vs. Highland Longshort Healthcare | Ing Intermediate vs. Blackrock Health Sciences |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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