Correlation Between Ing Intermediate and Voya Vacs
Can any of the company-specific risk be diversified away by investing in both Ing Intermediate and Voya Vacs 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 Vacs 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 Vacs Index, you can compare the effects of market volatilities on Ing Intermediate and Voya Vacs 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 Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ing Intermediate and Voya Vacs.
Diversification Opportunities for Ing Intermediate and Voya Vacs
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ing and Voya is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ing Intermediate Bond and Voya Vacs Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Index 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 Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Index has no effect on the direction of Ing Intermediate i.e., Ing Intermediate and Voya Vacs go up and down completely randomly.
Pair Corralation between Ing Intermediate and Voya Vacs
Assuming the 90 days horizon Ing Intermediate is expected to generate 1.36 times less return on investment than Voya Vacs. But when comparing it to its historical volatility, Ing Intermediate Bond is 2.2 times less risky than Voya Vacs. It trades about 0.06 of its potential returns per unit of risk. Voya Vacs Index is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,027 in Voya Vacs Index on September 12, 2024 and sell it today you would earn a total of 111.00 from holding Voya Vacs Index or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ing Intermediate Bond vs. Voya Vacs Index
Performance |
| Timeline |
| Ing Intermediate Bond |
| Voya Vacs Index |
Ing Intermediate and Voya Vacs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ing Intermediate and Voya Vacs
The main advantage of trading using opposite Ing Intermediate and Voya Vacs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ing Intermediate position performs unexpectedly, Voya Vacs 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 Vacs will offset losses from the drop in Voya Vacs' long position.| Ing Intermediate vs. Baird Strategic Municipal | Ing Intermediate vs. Bbh Intermediate Municipal | Ing Intermediate vs. Old Westbury Municipal | Ing Intermediate vs. Dws Government Money |
| Voya Vacs vs. SCOR PK | Voya Vacs vs. Morningstar Unconstrained Allocation | Voya Vacs vs. Via Renewables | Voya Vacs vs. Bondbloxx ETF Trust |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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