Correlation Between Ing Intermediate and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Ing Intermediate and Voya Intermediate 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 Intermediate and Voya Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ing Intermediate Bond and Voya Intermediate Bond, you can compare the effects of market volatilities on Ing Intermediate and Voya Intermediate 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 Intermediate with a short position of Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Intermediate and Voya Intermediate.
Diversification Opportunities for Ing Intermediate and Voya Intermediate
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Ing and Voya is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Ing Intermediate Bond and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate Bond and Ing Intermediate 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 Intermediate Bond are associated (or correlated) with Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Ing Intermediate i.e., Ing Intermediate and Voya Intermediate go up and down completely randomly.
Pair Corralation between Ing Intermediate and Voya Intermediate
Assuming the 90 days horizon Ing Intermediate is expected to generate 1.07 times less return on investment than Voya Intermediate. But when comparing it to its historical volatility, Ing Intermediate Bond is 1.11 times less risky than Voya Intermediate. It trades about 0.08 of its potential returns per unit of risk. Voya Intermediate Bond is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Voya Intermediate Bond on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Voya Intermediate Bond or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ing Intermediate Bond vs. Voya Intermediate Bond
Performance |
| Timeline |
| Ing Intermediate Bond |
| Voya Intermediate Bond |
Ing Intermediate and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Intermediate and Voya Intermediate
The main advantage of trading using opposite Ing Intermediate and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Intermediate position performs unexpectedly, Voya Intermediate 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 Voya Intermediate will offset losses from the drop in Voya Intermediate's long position.| Ing Intermediate vs. Ppm High Yield | Ing Intermediate vs. Ab High Income | Ing Intermediate vs. Metropolitan West High | Ing Intermediate vs. Multimanager Lifestyle Aggressive |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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