Correlation Between Ab Global and Voya Index
Can any of the company-specific risk be diversified away by investing in both Ab Global and Voya Index 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 Index 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 Index Plus, you can compare the effects of market volatilities on Ab Global and Voya Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Voya Index.
Diversification Opportunities for Ab Global and Voya Index
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CBSYX and Voya is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of Ab Global i.e., Ab Global and Voya Index go up and down completely randomly.
Pair Corralation between Ab Global and Voya Index
Assuming the 90 days horizon Ab Global is expected to generate 3.51 times less return on investment than Voya Index. But when comparing it to its historical volatility, Ab Global Risk is 1.78 times less risky than Voya Index. It trades about 0.05 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,010 in Voya Index Plus on September 3, 2024 and sell it today you would earn a total of 1,088 from holding Voya Index Plus or generate 54.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Risk vs. Voya Index Plus
Performance |
| Timeline |
| Ab Global Risk |
| Voya Index Plus |
Ab Global and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Voya Index
The main advantage of trading using opposite Ab Global and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| Ab Global vs. Absolute Convertible Arbitrage | Ab Global vs. Putnam Convertible Incm Gwth | Ab Global vs. Virtus Convertible | Ab Global vs. Lord Abbett Convertible |
| Voya Index vs. Needham Aggressive Growth | Voya Index vs. Ab Global Risk | Voya Index vs. Goldman Sachs High | Voya Index vs. Vanguard Star Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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