Correlation Between Ing Series and Wilmington Intermediate-ter
Can any of the company-specific risk be diversified away by investing in both Ing Series and Wilmington Intermediate-ter 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 Ing Series and Wilmington Intermediate-ter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ing Series Fund and Wilmington Intermediate Term Bond, you can compare the effects of market volatilities on Ing Series and Wilmington Intermediate-ter 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 Ing Series with a short position of Wilmington Intermediate-ter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Series and Wilmington Intermediate-ter.
Diversification Opportunities for Ing Series and Wilmington Intermediate-ter
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ing and Wilmington is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ing Series Fund and Wilmington Intermediate Term B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Intermediate-ter and Ing Series 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 Ing Series Fund are associated (or correlated) with Wilmington Intermediate-ter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Intermediate-ter has no effect on the direction of Ing Series i.e., Ing Series and Wilmington Intermediate-ter go up and down completely randomly.
Pair Corralation between Ing Series and Wilmington Intermediate-ter
Assuming the 90 days horizon Ing Series Fund is expected to generate 1.9 times more return on investment than Wilmington Intermediate-ter. However, Ing Series is 1.9 times more volatile than Wilmington Intermediate Term Bond. It trades about 0.26 of its potential returns per unit of risk. Wilmington Intermediate Term Bond is currently generating about 0.04 per unit of risk. If you would invest 1,386 in Ing Series Fund on September 2, 2024 and sell it today you would earn a total of 114.00 from holding Ing Series Fund or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ing Series Fund vs. Wilmington Intermediate Term B
Performance |
| Timeline |
| Ing Series Fund |
| Wilmington Intermediate-ter |
Ing Series and Wilmington Intermediate-ter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Series and Wilmington Intermediate-ter
The main advantage of trading using opposite Ing Series and Wilmington Intermediate-ter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Series position performs unexpectedly, Wilmington Intermediate-ter 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 Wilmington Intermediate-ter will offset losses from the drop in Wilmington Intermediate-ter's long position.| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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