Correlation Between Ing Intermediate and Voya Gnma
Can any of the company-specific risk be diversified away by investing in both Ing Intermediate and Voya Gnma 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 Gnma 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 Gnma Income, you can compare the effects of market volatilities on Ing Intermediate and Voya Gnma 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 Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Intermediate and Voya Gnma.
Diversification Opportunities for Ing Intermediate and Voya Gnma
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 Gnma Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Gnma Income 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 Gnma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Gnma Income has no effect on the direction of Ing Intermediate i.e., Ing Intermediate and Voya Gnma go up and down completely randomly.
Pair Corralation between Ing Intermediate and Voya Gnma
Assuming the 90 days horizon Ing Intermediate is expected to generate 1.54 times less return on investment than Voya Gnma. But when comparing it to its historical volatility, Ing Intermediate Bond is 1.15 times less risky than Voya Gnma. It trades about 0.09 of its potential returns per unit of risk. Voya Gnma Income is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 734.00 in Voya Gnma Income on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Voya Gnma Income or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ing Intermediate Bond vs. Voya Gnma Income
Performance |
| Timeline |
| Ing Intermediate Bond |
| Voya Gnma Income |
Ing Intermediate and Voya Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Intermediate and Voya Gnma
The main advantage of trading using opposite Ing Intermediate and Voya Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Intermediate position performs unexpectedly, Voya Gnma 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 Gnma will offset losses from the drop in Voya Gnma's long position.| Ing Intermediate vs. Voya Bond Index | Ing Intermediate vs. Voya Bond Index | Ing Intermediate vs. Voya Limited Maturity | Ing Intermediate vs. Voya Limited Maturity |
| Voya Gnma vs. Fabxx | Voya Gnma vs. Leggmason Partners Institutional | Voya Gnma vs. Falcon Focus Scv | Voya Gnma vs. T Rowe Price |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |