Correlation Between Pacific Funds and Ing Series
Can any of the company-specific risk be diversified away by investing in both Pacific Funds and Ing Series 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 Pacific Funds and Ing Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Funds Esg and Ing Series Fund, you can compare the effects of market volatilities on Pacific Funds and Ing Series 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 Pacific Funds with a short position of Ing Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Funds and Ing Series.
Diversification Opportunities for Pacific Funds and Ing Series
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pacific and Ing is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Funds Esg and Ing Series Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Series Fund and Pacific Funds 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 Pacific Funds Esg are associated (or correlated) with Ing Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Series Fund has no effect on the direction of Pacific Funds i.e., Pacific Funds and Ing Series go up and down completely randomly.
Pair Corralation between Pacific Funds and Ing Series
Assuming the 90 days horizon Pacific Funds is expected to generate 3.01 times less return on investment than Ing Series. But when comparing it to its historical volatility, Pacific Funds Esg is 3.71 times less risky than Ing Series. It trades about 0.09 of its potential returns per unit of risk. Ing Series Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Ing Series Fund on September 1, 2024 and sell it today you would earn a total of 150.00 from holding Ing Series Fund or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Funds Esg vs. Ing Series Fund
Performance |
| Timeline |
| Pacific Funds Esg |
| Ing Series Fund |
Pacific Funds and Ing Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Funds and Ing Series
The main advantage of trading using opposite Pacific Funds and Ing Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Funds position performs unexpectedly, Ing Series 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 Ing Series will offset losses from the drop in Ing Series' long position.| Pacific Funds vs. Aristotle Funds Series | Pacific Funds vs. Aristotle Funds Series | Pacific Funds vs. Aristotle International Eq | Pacific Funds vs. Aristotle Funds Series |
| Ing Series vs. Aristotle Funds Series | Ing Series vs. Aristotle Funds Series | Ing Series vs. Aristotle International Eq | Ing Series vs. Aristotle Funds Series |
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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