Correlation Between Ing Intermediate and Voya Investment
Can any of the company-specific risk be diversified away by investing in both Ing Intermediate and Voya Investment 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 Investment 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 Investment Grade, you can compare the effects of market volatilities on Ing Intermediate and Voya Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Intermediate and Voya Investment.
Diversification Opportunities for Ing Intermediate and Voya Investment
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ing and Voya is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ing Intermediate Bond and Voya Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Investment Grade 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Investment Grade has no effect on the direction of Ing Intermediate i.e., Ing Intermediate and Voya Investment go up and down completely randomly.
Pair Corralation between Ing Intermediate and Voya Investment
Assuming the 90 days horizon Ing Intermediate Bond is expected to generate 0.87 times more return on investment than Voya Investment. However, Ing Intermediate Bond is 1.15 times less risky than Voya Investment. It trades about 0.07 of its potential returns per unit of risk. Voya Investment Grade is currently generating about 0.03 per unit of risk. If you would invest 1,074 in Ing Intermediate Bond on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Ing Intermediate Bond or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ing Intermediate Bond vs. Voya Investment Grade
Performance |
| Timeline |
| Ing Intermediate Bond |
| Voya Investment Grade |
Ing Intermediate and Voya Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Intermediate and Voya Investment
The main advantage of trading using opposite Ing Intermediate and Voya Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Intermediate position performs unexpectedly, Voya Investment 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 Investment will offset losses from the drop in Voya Investment's long position.| Ing Intermediate vs. Baron Health Care | Ing Intermediate vs. Eventide Healthcare Life | Ing Intermediate vs. Highland Longshort Healthcare | Ing Intermediate vs. Blackrock Health Sciences |
| Voya Investment vs. Avantis Large Cap | Voya Investment vs. Virtus Nfj Large Cap | Voya Investment vs. Qs Large Cap | Voya Investment vs. Blackrock Large Cap |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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