Correlation Between Locorr Market and Ing Series

Can any of the company-specific risk be diversified away by investing in both Locorr Market 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 Locorr Market and Ing Series into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Locorr Market Trend and Ing Series Fund, you can compare the effects of market volatilities on Locorr Market 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 Locorr Market with a short position of Ing Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Market and Ing Series.

Diversification Opportunities for Locorr Market and Ing Series

-0.05

Correlation Coefficient

Locorr Market  Ing Series

Good diversification

The 3 months correlation between Locorr and Ing is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Market Trend 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 Locorr Market 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 Locorr Market Trend 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 Locorr Market i.e., Locorr Market and Ing Series go up and down completely randomly.

Pair Corralation between Locorr Market and Ing Series

Assuming the 90 days horizon Locorr Market is expected to generate 7.35 times less return on investment than Ing Series. But when comparing it to its historical volatility, Locorr Market Trend is 1.27 times less risky than Ing Series. It trades about 0.01 of its potential returns per unit of risk. Ing Series Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,304  in Ing Series Fund on October 24, 2024 and sell it today you would earn a total of  150.00  from holding Ing Series Fund or generate 11.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Locorr Market Trend  vs.  Ing Series Fund

Locorr Market Trend

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Locorr Market Trend are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Locorr Market is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ing Series Fund

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ing Series Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Ing Series is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Locorr Market and Ing Series

The main advantage of trading using opposite Locorr Market and Ing Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Market 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.

The idea behind Locorr Market Trend and Ing Series Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.