Correlation Between Voya Bond and Ing Evergreen
Can any of the company-specific risk be diversified away by investing in both Voya Bond and Ing Evergreen 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 Voya Bond and Ing Evergreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Bond Index and Ing Evergreen Omega, you can compare the effects of market volatilities on Voya Bond and Ing Evergreen 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 Voya Bond with a short position of Ing Evergreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and Ing Evergreen.
Diversification Opportunities for Voya Bond and Ing Evergreen
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voya and Ing is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Ing Evergreen Omega in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Evergreen Omega and Voya Bond 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 Voya Bond Index are associated (or correlated) with Ing Evergreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Evergreen Omega has no effect on the direction of Voya Bond i.e., Voya Bond and Ing Evergreen go up and down completely randomly.
Pair Corralation between Voya Bond and Ing Evergreen
Assuming the 90 days horizon Voya Bond is expected to generate 5.11 times less return on investment than Ing Evergreen. But when comparing it to its historical volatility, Voya Bond Index is 3.36 times less risky than Ing Evergreen. It trades about 0.05 of its potential returns per unit of risk. Ing Evergreen Omega is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,187 in Ing Evergreen Omega on August 25, 2024 and sell it today you would earn a total of 205.00 from holding Ing Evergreen Omega or generate 17.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Voya Bond Index vs. Ing Evergreen Omega
Performance |
| Timeline |
| Voya Bond Index |
| Ing Evergreen Omega |
Voya Bond and Ing Evergreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and Ing Evergreen
The main advantage of trading using opposite Voya Bond and Ing Evergreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, Ing Evergreen 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 Evergreen will offset losses from the drop in Ing Evergreen's long position.| Voya Bond vs. Voya Bond Index | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Bond Index |
| Ing Evergreen vs. Western Asset Inflation | Ing Evergreen vs. Lord Abbett Inflation | Ing Evergreen vs. Aqr Managed Futures | Ing Evergreen vs. Deutsche Global Inflation |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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