Correlation Between Global Gold and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Global Gold and Voya 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 Global Gold and Voya Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Voya Intermediate Bond, you can compare the effects of market volatilities on Global Gold and Voya 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 Global Gold with a short position of Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Voya Intermediate.
Diversification Opportunities for Global Gold and Voya Intermediate
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and Voya is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate Bond and Global Gold 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 Global Gold Fund are associated (or correlated) with Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Global Gold i.e., Global Gold and Voya Intermediate go up and down completely randomly.
Pair Corralation between Global Gold and Voya Intermediate
Assuming the 90 days horizon Global Gold Fund is expected to generate 4.4 times more return on investment than Voya Intermediate. However, Global Gold is 4.4 times more volatile than Voya Intermediate Bond. It trades about 0.44 of its potential returns per unit of risk. Voya Intermediate Bond is currently generating about 0.06 per unit of risk. If you would invest 1,206 in Global Gold Fund on November 4, 2024 and sell it today you would earn a total of 143.00 from holding Global Gold Fund or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Gold Fund vs. Voya Intermediate Bond
Performance |
| Timeline |
| Global Gold Fund |
| Voya Intermediate Bond |
Global Gold and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Voya Intermediate
The main advantage of trading using opposite Global Gold and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Voya 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 Voya Intermediate will offset losses from the drop in Voya Intermediate's long position.| Global Gold vs. Goldman Sachs Clean | Global Gold vs. Gabelli Gold Fund | Global Gold vs. Goldman Sachs Mid | Global Gold vs. Precious Metals And |
| Voya Intermediate vs. Great West Goldman Sachs | Voya Intermediate vs. Global Gold Fund | Voya Intermediate vs. Invesco Gold Special | Voya Intermediate vs. Fidelity Advisor Gold |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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