Correlation Between Ing Series and Gold
Can any of the company-specific risk be diversified away by investing in both Ing Series and Gold 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 Gold 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 Gold And Precious, you can compare the effects of market volatilities on Ing Series and Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Series and Gold.
Diversification Opportunities for Ing Series and Gold
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ing and Gold is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ing Series Fund and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of Ing Series i.e., Ing Series and Gold go up and down completely randomly.
Pair Corralation between Ing Series and Gold
Assuming the 90 days horizon Ing Series Fund is expected to under-perform the Gold. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ing Series Fund is 1.85 times less risky than Gold. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Gold And Precious is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,257 in Gold And Precious on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Gold And Precious or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ing Series Fund vs. Gold And Precious
Performance |
| Timeline |
| Ing Series Fund |
| Gold And Precious |
Ing Series and Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Series and Gold
The main advantage of trading using opposite Ing Series and Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Series position performs unexpectedly, Gold 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 Gold will offset losses from the drop in Gold's long position.| Ing Series vs. Pimco Diversified Income | Ing Series vs. Pioneer Diversified High | Ing Series vs. Davenport Small Cap | Ing Series vs. Adams Diversified Equity |
| Gold vs. Artisan Thematic Fund | Gold vs. Auer Growth Fund | Gold vs. Balanced Fund Investor | Gold vs. Nasdaq 100 Index Fund |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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