Correlation Between Ing Evergreen and Western Asset
Can any of the company-specific risk be diversified away by investing in both Ing Evergreen and Western Asset 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 Western Asset 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 Western Asset Inflation, you can compare the effects of market volatilities on Ing Evergreen and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Evergreen and Western Asset.
Diversification Opportunities for Ing Evergreen and Western Asset
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ing and Western is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ing Evergreen Omega and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Inflation has no effect on the direction of Ing Evergreen i.e., Ing Evergreen and Western Asset go up and down completely randomly.
Pair Corralation between Ing Evergreen and Western Asset
Assuming the 90 days horizon Ing Evergreen Omega is expected to generate 3.65 times more return on investment than Western Asset. However, Ing Evergreen is 3.65 times more volatile than Western Asset Inflation. It trades about 0.18 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.02 per unit of risk. If you would invest 1,339 in Ing Evergreen Omega on August 29, 2024 and sell it today you would earn a total of 63.00 from holding Ing Evergreen Omega or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ing Evergreen Omega vs. Western Asset Inflation
Performance |
| Timeline |
| Ing Evergreen Omega |
| Western Asset Inflation |
Ing Evergreen and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Evergreen and Western Asset
The main advantage of trading using opposite Ing Evergreen and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Evergreen position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. Vanguard Inflation Protected Securities | Western Asset vs. American Funds Inflation | Western Asset vs. HUMANA INC | Western Asset vs. Aquagold International |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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