Correlation Between Voya Global and Ing Solution

Can any of the company-specific risk be diversified away by investing in both Voya Global 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 Global 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 Global Bond and Ing Solution 2025, you can compare the effects of market volatilities on Voya Global 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 Global with a short position of Ing Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Ing Solution.

Diversification Opportunities for Voya Global and Ing Solution

0.83

Correlation Coefficient

Voya Global  Ing Solution

Very poor diversification

The 3 months correlation between Voya and Ing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Bond 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 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 Voya Global Bond 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 Global i.e., Voya Global and Ing Solution go up and down completely randomly.

Pair Corralation between Voya Global and Ing Solution

Assuming the 90 days horizon Voya Global is expected to generate 1.76 times less return on investment than Ing Solution. In addition to that, Voya Global is 1.21 times more volatile than Ing Solution 2025. It trades about 0.12 of its total potential returns per unit of risk. Ing Solution 2025 is currently generating about 0.26 per unit of volatility. If you would invest  889.00  in Ing Solution 2025 on May 22, 2025 and sell it today you would earn a total of  40.00  from holding Ing Solution 2025 or generate 4.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Voya Global Bond  vs.  Ing Solution 2025

Voya Global Bond

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Global Bond are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Voya Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ing Solution 2025

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ing Solution 2025 are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ing Solution is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Voya Global and Ing Solution

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

The idea behind Voya Global Bond and Ing Solution 2025 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..