Correlation Between Ing Intermediate and Voya High
Can any of the company-specific risk be diversified away by investing in both Ing Intermediate and Voya High 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 High 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 High Yield, you can compare the effects of market volatilities on Ing Intermediate and Voya High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Intermediate and Voya High.
Diversification Opportunities for Ing Intermediate and Voya High
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ing and Voya is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ing Intermediate Bond and Voya High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya High Yield has no effect on the direction of Ing Intermediate i.e., Ing Intermediate and Voya High go up and down completely randomly.
Pair Corralation between Ing Intermediate and Voya High
Assuming the 90 days horizon Ing Intermediate Bond is expected to generate 2.47 times more return on investment than Voya High. However, Ing Intermediate is 2.47 times more volatile than Voya High Yield. It trades about 0.11 of its potential returns per unit of risk. Voya High Yield is currently generating about 0.15 per unit of risk. If you would invest 1,087 in Ing Intermediate Bond on September 3, 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 | 100.0% |
| Values | Daily Returns |
Ing Intermediate Bond vs. Voya High Yield
Performance |
| Timeline |
| Ing Intermediate Bond |
| Voya High Yield |
Ing Intermediate and Voya High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Intermediate and Voya High
The main advantage of trading using opposite Ing Intermediate and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Intermediate position performs unexpectedly, Voya High 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 High will offset losses from the drop in Voya High's long position.| Ing Intermediate vs. Hennessy Bp Energy | Ing Intermediate vs. Tortoise Energy Independence | Ing Intermediate vs. Dreyfus Natural Resources | Ing Intermediate vs. Fidelity Advisor Energy |
| Voya High vs. Bbh Intermediate Municipal | Voya High vs. Blrc Sgy Mnp | Voya High vs. Limited Term Tax | Voya High vs. Ambrus Core Bond |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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