Correlation Between Ing Evergreen and Mutual Of
Can any of the company-specific risk be diversified away by investing in both Ing Evergreen and Mutual Of 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 Evergreen and Mutual Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ing Evergreen Omega and Mutual Of America, you can compare the effects of market volatilities on Ing Evergreen and Mutual Of 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 Evergreen with a short position of Mutual Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Evergreen and Mutual Of.
Diversification Opportunities for Ing Evergreen and Mutual Of
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ing and Mutual is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ing Evergreen Omega and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America and Ing Evergreen 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 Evergreen Omega are associated (or correlated) with Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Ing Evergreen i.e., Ing Evergreen and Mutual Of go up and down completely randomly.
Pair Corralation between Ing Evergreen and Mutual Of
Assuming the 90 days horizon Ing Evergreen is expected to generate 1.97 times less return on investment than Mutual Of. But when comparing it to its historical volatility, Ing Evergreen Omega is 1.5 times less risky than Mutual Of. It trades about 0.18 of its potential returns per unit of risk. Mutual Of America is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,517 in Mutual Of America on August 29, 2024 and sell it today you would earn a total of 137.00 from holding Mutual Of America or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ing Evergreen Omega vs. Mutual Of America
Performance |
| Timeline |
| Ing Evergreen Omega |
| Mutual Of America |
Ing Evergreen and Mutual Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Evergreen and Mutual Of
The main advantage of trading using opposite Ing Evergreen and Mutual Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Evergreen position performs unexpectedly, Mutual Of 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 Mutual Of will offset losses from the drop in Mutual Of's long position.| Ing Evergreen vs. Mutual Of America | Ing Evergreen vs. Boston Partners Small | Ing Evergreen vs. Vanguard Small Cap Value | Ing Evergreen vs. Heartland Value Plus |
| Mutual Of vs. Vanguard Small Cap Value | Mutual Of vs. Vanguard Small Cap Value | Mutual Of vs. Us Small Cap | Mutual Of vs. Us Targeted Value |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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