Correlation Between Voya Bond and Ing Solution
Can any of the company-specific risk be diversified away by investing in both Voya Bond and Ing Solution 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 Solution 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 Solution 2025, you can compare the effects of market volatilities on Voya Bond and Ing Solution 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 Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and Ing Solution.
Diversification Opportunities for Voya Bond and Ing Solution
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Voya and Ing is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Ing Solution 2025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Solution 2025 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 Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Solution 2025 has no effect on the direction of Voya Bond i.e., Voya Bond and Ing Solution go up and down completely randomly.
Pair Corralation between Voya Bond and Ing Solution
Assuming the 90 days horizon Voya Bond is expected to generate 5.3 times less return on investment than Ing Solution. But when comparing it to its historical volatility, Voya Bond Index is 1.11 times less risky than Ing Solution. It trades about 0.02 of its potential returns per unit of risk. Ing Solution 2025 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 801.00 in Ing Solution 2025 on August 29, 2024 and sell it today you would earn a total of 174.00 from holding Ing Solution 2025 or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Bond Index vs. Ing Solution 2025
Performance |
| Timeline |
| Voya Bond Index |
| Ing Solution 2025 |
Voya Bond and Ing Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and Ing Solution
The main advantage of trading using opposite Voya Bond and Ing Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, Ing Solution 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 Solution will offset losses from the drop in Ing Solution's long position.| Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Emerging Markets |
| Ing Solution vs. Voya Bond Index | Ing Solution vs. Voya Bond Index | Ing Solution vs. Voya Limited Maturity | Ing Solution vs. Voya Limited Maturity |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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