Correlation Between Aristotle Funds and Ing Series
Can any of the company-specific risk be diversified away by investing in both Aristotle Funds 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 Funds 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 Funds Series and Ing Series Fund, you can compare the effects of market volatilities on Aristotle Funds 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 Funds with a short position of Ing Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aristotle Funds and Ing Series.
Diversification Opportunities for Aristotle Funds and Ing Series
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aristotle and Ing is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Aristotle Funds Series 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 Funds 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 Funds Series 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 Funds i.e., Aristotle Funds and Ing Series go up and down completely randomly.
Pair Corralation between Aristotle Funds and Ing Series
Assuming the 90 days horizon Aristotle Funds Series is expected to generate 0.94 times more return on investment than Ing Series. However, Aristotle Funds Series is 1.07 times less risky than Ing Series. It trades about 0.11 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 823.00 in Aristotle Funds Series on September 1, 2024 and sell it today you would earn a total of 123.00 from holding Aristotle Funds Series or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Aristotle Funds Series vs. Ing Series Fund
Performance |
| Timeline |
| Aristotle Funds Series |
| Ing Series Fund |
Aristotle Funds and Ing Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aristotle Funds and Ing Series
The main advantage of trading using opposite Aristotle Funds and Ing Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aristotle Funds 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 Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle International Eq | Aristotle Funds vs. Aristotle Funds Series |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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