Correlation Between Bank of America and Voya Strategic
Can any of the company-specific risk be diversified away by investing in both Bank of America and Voya Strategic 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 Bank of America and Voya Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Voya Strategic Income, you can compare the effects of market volatilities on Bank of America and Voya Strategic 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 Bank of America with a short position of Voya Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Voya Strategic.
Diversification Opportunities for Bank of America and Voya Strategic
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Voya is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Voya Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Strategic Income and Bank of America 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 Bank of America are associated (or correlated) with Voya Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Strategic Income has no effect on the direction of Bank of America i.e., Bank of America and Voya Strategic go up and down completely randomly.
Pair Corralation between Bank of America and Voya Strategic
Considering the 90-day investment horizon Bank of America is expected to generate 13.91 times more return on investment than Voya Strategic. However, Bank of America is 13.91 times more volatile than Voya Strategic Income. It trades about 0.27 of its potential returns per unit of risk. Voya Strategic Income is currently generating about 0.14 per unit of risk. If you would invest 4,262 in Bank of America on August 29, 2024 and sell it today you would earn a total of 523.50 from holding Bank of America or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank of America vs. Voya Strategic Income
Performance |
| Timeline |
| Bank of America |
| Voya Strategic Income |
Bank of America and Voya Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Voya Strategic
The main advantage of trading using opposite Bank of America and Voya Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Voya Strategic 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 Strategic will offset losses from the drop in Voya Strategic's long position.| Bank of America vs. Citigroup | Bank of America vs. Wells Fargo | Bank of America vs. Toronto Dominion Bank | Bank of America vs. JPMorgan Chase Co |
| Voya Strategic vs. HUMANA INC | Voya Strategic vs. Aquagold International | Voya Strategic vs. Barloworld Ltd ADR | Voya Strategic vs. Morningstar Unconstrained Allocation |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |