Correlation Between Ab Global and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Ab Global and Voya Multi-manager 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 Ab Global and Voya Multi-manager into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Risk and Voya Multi Manager Mid, you can compare the effects of market volatilities on Ab Global and Voya Multi-manager 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 Ab Global with a short position of Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Voya Multi-manager.
Diversification Opportunities for Ab Global and Voya Multi-manager
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CABIX and Voya is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Voya Multi Manager Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager and Ab Global 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 Ab Global Risk are associated (or correlated) with Voya Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Ab Global i.e., Ab Global and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Ab Global and Voya Multi-manager
Assuming the 90 days horizon Ab Global Risk is expected to under-perform the Voya Multi-manager. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Global Risk is 2.03 times less risky than Voya Multi-manager. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Voya Multi Manager Mid is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,084 in Voya Multi Manager Mid on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Voya Multi Manager Mid or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Voya Multi Manager Mid
Performance |
| Timeline |
| Ab Global Risk |
| Voya Multi Manager |
Ab Global and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Voya Multi-manager
The main advantage of trading using opposite Ab Global and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Voya Multi-manager 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 Multi-manager will offset losses from the drop in Voya Multi-manager's long position.| Ab Global vs. Volumetric Fund Volumetric | Ab Global vs. Semiconductor Ultrasector Profund | Ab Global vs. Western Asset Pennsylvania | Ab Global vs. Vanguard Strategic Small Cap |
| Voya Multi-manager vs. Artisan Global Unconstrained | Voya Multi-manager vs. T Rowe Price | Voya Multi-manager vs. Us Global Investors | Voya Multi-manager vs. Ab Global Risk |
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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