Correlation Between Aristotle Growth and Ing Series
Can any of the company-specific risk be diversified away by investing in both Aristotle Growth 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 Aristotle Growth and Ing Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aristotle Growth Equity and Ing Series Fund, you can compare the effects of market volatilities on Aristotle Growth 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 Aristotle Growth with a short position of Ing Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Growth and Ing Series.
Diversification Opportunities for Aristotle Growth and Ing Series
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aristotle and Ing is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aristotle Growth Equity 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 Aristotle Growth 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 Aristotle Growth Equity 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 Aristotle Growth i.e., Aristotle Growth and Ing Series go up and down completely randomly.
Pair Corralation between Aristotle Growth and Ing Series
Assuming the 90 days horizon Aristotle Growth Equity is expected to generate 1.01 times more return on investment than Ing Series. However, Aristotle Growth is 1.01 times more volatile than Ing Series Fund. It trades about 0.1 of its potential returns per unit of risk. Ing Series Fund is currently generating about 0.08 per unit of risk. If you would invest 1,435 in Aristotle Growth Equity on September 1, 2024 and sell it today you would earn a total of 211.00 from holding Aristotle Growth Equity or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aristotle Growth Equity vs. Ing Series Fund
Performance |
| Timeline |
| Aristotle Growth Equity |
| Ing Series Fund |
Aristotle Growth and Ing Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aristotle Growth and Ing Series
The main advantage of trading using opposite Aristotle Growth and Ing Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristotle Growth 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.| Aristotle Growth vs. Allianzgi Convertible Income | Aristotle Growth vs. Lord Abbett Convertible | Aristotle Growth vs. Virtus Convertible | Aristotle Growth vs. Harbor Vertible Securities |
| Ing Series vs. Aristotle Funds Series | Ing Series vs. Aristotle Funds Series | Ing Series vs. Aristotle International Eq | Ing Series vs. Aristotle Funds Series |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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