Correlation Between Growth Fund and Voya Vacs
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Voya Vacs 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 Growth Fund and Voya Vacs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Voya Vacs Series, you can compare the effects of market volatilities on Growth Fund and Voya Vacs 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 Growth Fund with a short position of Voya Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Voya Vacs.
Diversification Opportunities for Growth Fund and Voya Vacs
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Growth and Voya is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Voya Vacs Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Series and Growth 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 Growth Fund Of are associated (or correlated) with Voya Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Series has no effect on the direction of Growth Fund i.e., Growth Fund and Voya Vacs go up and down completely randomly.
Pair Corralation between Growth Fund and Voya Vacs
Assuming the 90 days horizon Growth Fund Of is expected to generate 1.23 times more return on investment than Voya Vacs. However, Growth Fund is 1.23 times more volatile than Voya Vacs Series. It trades about 0.08 of its potential returns per unit of risk. Voya Vacs Series is currently generating about 0.06 per unit of risk. If you would invest 7,594 in Growth Fund Of on October 23, 2024 and sell it today you would earn a total of 104.00 from holding Growth Fund Of or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Voya Vacs Series
Performance |
| Timeline |
| Growth Fund |
| Voya Vacs Series |
Growth Fund and Voya Vacs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Voya Vacs
The main advantage of trading using opposite Growth Fund and Voya Vacs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Voya Vacs 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 Vacs will offset losses from the drop in Voya Vacs' long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
| Voya Vacs vs. Wcm Focused Emerging | Voya Vacs vs. Black Oak Emerging | Voya Vacs vs. Eagle Mlp Strategy | Voya Vacs vs. Virtus Multi Strategy Target |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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