Correlation Between Voya T and Ing Solution
Can any of the company-specific risk be diversified away by investing in both Voya T and Ing Solution 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 T and Ing Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya T Rowe and Ing Solution 2025, you can compare the effects of market volatilities on Voya T and Ing Solution 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 T with a short position of Ing Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya T and Ing Solution.
Diversification Opportunities for Voya T and Ing Solution
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Ing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Voya T Rowe and Ing Solution 2025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Solution 2025 and Voya T 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 T Rowe are associated (or correlated) with Ing Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Solution 2025 has no effect on the direction of Voya T i.e., Voya T and Ing Solution go up and down completely randomly.
Pair Corralation between Voya T and Ing Solution
Assuming the 90 days horizon Voya T Rowe is expected to generate 1.11 times more return on investment than Ing Solution. However, Voya T is 1.11 times more volatile than Ing Solution 2025. It trades about 0.12 of its potential returns per unit of risk. Ing Solution 2025 is currently generating about 0.09 per unit of risk. If you would invest 2,203 in Voya T Rowe on August 29, 2024 and sell it today you would earn a total of 745.00 from holding Voya T Rowe or generate 33.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya T Rowe vs. Ing Solution 2025
Performance |
| Timeline |
| Voya T Rowe |
| Ing Solution 2025 |
Voya T and Ing Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya T and Ing Solution
The main advantage of trading using opposite Voya T and Ing Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya T position performs unexpectedly, Ing Solution 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 Solution will offset losses from the drop in Ing Solution's long position.| Voya T vs. Voya Bond Index | Voya T vs. Voya Bond Index | Voya T vs. Voya Limited Maturity | Voya T vs. Voya Limited Maturity |
| Ing Solution vs. Voya Bond Index | Ing Solution vs. Voya Bond Index | Ing Solution vs. Voya Limited Maturity | Ing Solution vs. Voya Limited Maturity |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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