Correlation Between Aristotlesaul Global and Ing Series

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

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

Diversification Opportunities for Aristotlesaul Global and Ing Series

-0.4

Correlation Coefficient

Aristotlesaul Global  Ing Series

Very good diversification

The 3 months correlation between Aristotlesaul and Ing is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aristotlesaul Global Eq 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 Aristotlesaul Global 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 Aristotlesaul Global Eq 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 Aristotlesaul Global i.e., Aristotlesaul Global and Ing Series go up and down completely randomly.

Pair Corralation between Aristotlesaul Global and Ing Series

Assuming the 90 days horizon Aristotlesaul Global Eq is expected to under-perform the Ing Series. In addition to that, Aristotlesaul Global is 1.7 times more volatile than Ing Series Fund. It trades about -0.05 of its total potential returns per unit of risk. Ing Series Fund is currently generating about 0.04 per unit of volatility. If you would invest  1,326  in Ing Series Fund on September 20, 2024 and sell it today you would earn a total of  131.00  from holding Ing Series Fund or generate 9.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	94.76%
Values	Daily Returns

Aristotlesaul Global Eq  vs.  Ing Series Fund

Aristotlesaul Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aristotlesaul Global Eq has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Ing Series Fund

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ing Series Fund are ranked lower than 3 (%) 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 Aristotlesaul Global and Ing Series

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

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.