Correlation Between Global Gold and Voya Real
Can any of the company-specific risk be diversified away by investing in both Global Gold and Voya Real 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 Real 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 Real Estate, you can compare the effects of market volatilities on Global Gold and Voya Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Voya Real.
Diversification Opportunities for Global Gold and Voya Real
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and Voya is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Voya Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Real Estate 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 Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Real Estate has no effect on the direction of Global Gold i.e., Global Gold and Voya Real go up and down completely randomly.
Pair Corralation between Global Gold and Voya Real
Assuming the 90 days horizon Global Gold is expected to generate 1.99 times less return on investment than Voya Real. In addition to that, Global Gold is 2.85 times more volatile than Voya Real Estate. It trades about 0.06 of its total potential returns per unit of risk. Voya Real Estate is currently generating about 0.32 per unit of volatility. If you would invest 1,050 in Voya Real Estate on December 2, 2024 and sell it today you would earn a total of 44.00 from holding Voya Real Estate or generate 4.19% 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 Real Estate
Performance |
| Timeline |
| Global Gold Fund |
| Voya Real Estate |
Global Gold and Voya Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Voya Real
The main advantage of trading using opposite Global Gold and Voya Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Voya Real 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 Real will offset losses from the drop in Voya Real's long position.| Global Gold vs. Multimanager Lifestyle Growth | Global Gold vs. T Rowe Price | Global Gold vs. T Rowe Price | Global Gold vs. Tfa Alphagen Growth |
| Voya Real vs. Wilmington Funds | Voya Real vs. Schwab Government Money | Voya Real vs. Dreyfus Institutional Reserves | Voya Real vs. First American Funds |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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