Correlation Between Firsthand Alternative and Voya Target
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Voya Target 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 Firsthand Alternative and Voya Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Voya Target Retirement, you can compare the effects of market volatilities on Firsthand Alternative and Voya Target 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 Firsthand Alternative with a short position of Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Voya Target.
Diversification Opportunities for Firsthand Alternative and Voya Target
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FIRSTHAND and Voya is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Voya Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Voya Target go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Voya Target
Assuming the 90 days horizon Firsthand Alternative Energy is expected to under-perform the Voya Target. In addition to that, Firsthand Alternative is 3.08 times more volatile than Voya Target Retirement. It trades about -0.01 of its total potential returns per unit of risk. Voya Target Retirement is currently generating about 0.08 per unit of volatility. If you would invest 1,173 in Voya Target Retirement on December 12, 2024 and sell it today you would earn a total of 158.00 from holding Voya Target Retirement or generate 13.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Voya Target Retirement
Performance |
| Timeline |
| Firsthand Alternative |
| Voya Target Retirement |
Firsthand Alternative and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Voya Target
The main advantage of trading using opposite Firsthand Alternative and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Voya Target 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 Target will offset losses from the drop in Voya Target's long position.The idea behind Firsthand Alternative Energy and Voya Target Retirement 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.
| Voya Target vs. California Municipal Portfolio | ||
| Voya Target vs. Old Westbury Municipal | ||
| Voya Target vs. Us Government Securities | ||
| Voya Target vs. Dws Government Money |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |