Correlation Between Blackrock Government and Voya Russia
Can any of the company-specific risk be diversified away by investing in both Blackrock Government and Voya Russia 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 Blackrock Government and Voya Russia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Government Bond and Voya Russia Fund, you can compare the effects of market volatilities on Blackrock Government and Voya Russia 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 Blackrock Government with a short position of Voya Russia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Government and Voya Russia.
Diversification Opportunities for Blackrock Government and Voya Russia
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackrock and Voya is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Government Bond and Voya Russia Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Russia Fund and Blackrock Government 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 Blackrock Government Bond are associated (or correlated) with Voya Russia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Russia Fund has no effect on the direction of Blackrock Government i.e., Blackrock Government and Voya Russia go up and down completely randomly.
Pair Corralation between Blackrock Government and Voya Russia
Assuming the 90 days horizon Blackrock Government is expected to generate 77.3 times less return on investment than Voya Russia. But when comparing it to its historical volatility, Blackrock Government Bond is 18.71 times less risky than Voya Russia. It trades about 0.02 of its potential returns per unit of risk. Voya Russia Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Voya Russia Fund on September 3, 2024 and sell it today you would earn a total of 31.00 from holding Voya Russia Fund or generate 83.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 28.0% |
| Values | Daily Returns |
Blackrock Government Bond vs. Voya Russia Fund
Performance |
| Timeline |
| Blackrock Government Bond |
| Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackrock Government and Voya Russia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Government and Voya Russia
The main advantage of trading using opposite Blackrock Government and Voya Russia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Government position performs unexpectedly, Voya Russia 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 Russia will offset losses from the drop in Voya Russia's long position.The idea behind Blackrock Government Bond and Voya Russia Fund 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 Russia vs. Doubleline Global Bond | Voya Russia vs. 361 Global Longshort | Voya Russia vs. Alliancebernstein Global High | Voya Russia vs. Morningstar Global 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 CEOs Directory module to screen CEOs from public companies around the world.
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