Correlation Between Voya Index and Ing Intermediate
Can any of the company-specific risk be diversified away by investing in both Voya Index and Ing Intermediate 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 Voya Index and Ing Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Index Solution and Ing Intermediate Bond, you can compare the effects of market volatilities on Voya Index and Ing Intermediate 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 Voya Index with a short position of Ing Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Ing Intermediate.
Diversification Opportunities for Voya Index and Ing Intermediate
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Ing is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Solution and Ing Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Intermediate Bond and Voya Index 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 Voya Index Solution are associated (or correlated) with Ing Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Intermediate Bond has no effect on the direction of Voya Index i.e., Voya Index and Ing Intermediate go up and down completely randomly.
Pair Corralation between Voya Index and Ing Intermediate
Assuming the 90 days horizon Voya Index Solution is expected to generate 1.88 times more return on investment than Ing Intermediate. However, Voya Index is 1.88 times more volatile than Ing Intermediate Bond. It trades about 0.12 of its potential returns per unit of risk. Ing Intermediate Bond is currently generating about 0.09 per unit of risk. If you would invest 1,611 in Voya Index Solution on August 27, 2024 and sell it today you would earn a total of 26.00 from holding Voya Index Solution or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Index Solution vs. Ing Intermediate Bond
Performance |
| Timeline |
| Voya Index Solution |
| Ing Intermediate Bond |
Voya Index and Ing Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Ing Intermediate
The main advantage of trading using opposite Voya Index and Ing Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Ing Intermediate 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 Intermediate will offset losses from the drop in Ing Intermediate's long position.| Voya Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index vs. Voya Limited Maturity |
| Ing Intermediate vs. Jennison Natural Resources | Ing Intermediate vs. Calvert Global Energy | Ing Intermediate vs. Oil Gas Ultrasector | Ing Intermediate vs. Tortoise Energy Independence |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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