Correlation Between Avantis Us and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Avantis Us and Voya Bond 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 Avantis Us and Voya Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avantis Large Cap and Voya Bond Index, you can compare the effects of market volatilities on Avantis Us and Voya Bond 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 Avantis Us with a short position of Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avantis Us and Voya Bond.
Diversification Opportunities for Avantis Us and Voya Bond
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avantis and Voya is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Avantis Large Cap and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Avantis Us 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 Avantis Large Cap are associated (or correlated) with Voya Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Avantis Us i.e., Avantis Us and Voya Bond go up and down completely randomly.
Pair Corralation between Avantis Us and Voya Bond
Assuming the 90 days horizon Avantis Large Cap is expected to generate 2.39 times more return on investment than Voya Bond. However, Avantis Us is 2.39 times more volatile than Voya Bond Index. It trades about 0.1 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.03 per unit of risk. If you would invest 1,226 in Avantis Large Cap on November 2, 2024 and sell it today you would earn a total of 254.00 from holding Avantis Large Cap or generate 20.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avantis Large Cap vs. Voya Bond Index
Performance |
| Timeline |
| Avantis Large Cap |
| Voya Bond Index |
Avantis Us and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avantis Us and Voya Bond
The main advantage of trading using opposite Avantis Us and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avantis Us position performs unexpectedly, Voya Bond 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 Bond will offset losses from the drop in Voya Bond's long position.| Avantis Us vs. Calamos Dynamic Convertible | Avantis Us vs. Columbia Convertible Securities | Avantis Us vs. Virtus Convertible | Avantis Us vs. Fidelity Sai Convertible |
| Voya Bond vs. Tiaa Cref High Yield | Voya Bond vs. Dunham High Yield | Voya Bond vs. Multi Manager High Yield | Voya Bond vs. Artisan High Income |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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