Correlation Between Balanced Fund and Ing Intermediate
Can any of the company-specific risk be diversified away by investing in both Balanced Fund 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 Balanced Fund and Ing Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Investor and Ing Intermediate Bond, you can compare the effects of market volatilities on Balanced Fund 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 Balanced Fund with a short position of Ing Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Ing Intermediate.
Diversification Opportunities for Balanced Fund and Ing Intermediate
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Balanced and Ing is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Investor 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 Balanced Fund 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 Balanced Fund Investor 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 Balanced Fund i.e., Balanced Fund and Ing Intermediate go up and down completely randomly.
Pair Corralation between Balanced Fund and Ing Intermediate
Assuming the 90 days horizon Balanced Fund Investor is expected to generate 1.83 times more return on investment than Ing Intermediate. However, Balanced Fund is 1.83 times more volatile than Ing Intermediate Bond. It trades about 0.0 of its potential returns per unit of risk. Ing Intermediate Bond is currently generating about -0.13 per unit of risk. If you would invest 1,988 in Balanced Fund Investor on October 8, 2024 and sell it today you would lose (4.00) from holding Balanced Fund Investor or give up 0.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Balanced Fund Investor vs. Ing Intermediate Bond
Performance |
Timeline |
Balanced Fund Investor |
Ing Intermediate Bond |
Balanced Fund and Ing Intermediate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Balanced Fund and Ing Intermediate
The main advantage of trading using opposite Balanced Fund and Ing Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund 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.Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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