Correlation Between Ing Intermediate and Gold
Can any of the company-specific risk be diversified away by investing in both Ing Intermediate and Gold 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 Gold 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 Gold And Precious, you can compare the effects of market volatilities on Ing Intermediate and Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Intermediate and Gold.
Diversification Opportunities for Ing Intermediate and Gold
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ing and Gold is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ing Intermediate Bond and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of Ing Intermediate i.e., Ing Intermediate and Gold go up and down completely randomly.
Pair Corralation between Ing Intermediate and Gold
Assuming the 90 days horizon Ing Intermediate Bond is expected to generate 0.17 times more return on investment than Gold. However, Ing Intermediate Bond is 5.72 times less risky than Gold. It trades about 0.1 of its potential returns per unit of risk. Gold And Precious is currently generating about -0.22 per unit of risk. If you would invest 1,087 in Ing Intermediate Bond on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Ing Intermediate Bond or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ing Intermediate Bond vs. Gold And Precious
Performance |
| Timeline |
| Ing Intermediate Bond |
| Gold And Precious |
Ing Intermediate and Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Intermediate and Gold
The main advantage of trading using opposite Ing Intermediate and Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Intermediate position performs unexpectedly, Gold 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 Gold will offset losses from the drop in Gold's long position.| Ing Intermediate vs. Deutsche Health And | Ing Intermediate vs. The Hartford Healthcare | Ing Intermediate vs. Highland Longshort Healthcare | Ing Intermediate vs. Blackrock Health Sciences |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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