Correlation Between Allianzgi Technology and Voya Index
Can any of the company-specific risk be diversified away by investing in both Allianzgi Technology 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 Allianzgi Technology and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Technology Fund and Voya Index Plus, you can compare the effects of market volatilities on Allianzgi Technology 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 Allianzgi Technology with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Technology and Voya Index.
Diversification Opportunities for Allianzgi Technology and Voya Index
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and Voya is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund 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 Allianzgi Technology 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 Allianzgi Technology Fund 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 Allianzgi Technology i.e., Allianzgi Technology and Voya Index go up and down completely randomly.
Pair Corralation between Allianzgi Technology and Voya Index
Assuming the 90 days horizon Allianzgi Technology Fund is expected to generate 1.12 times more return on investment than Voya Index. However, Allianzgi Technology is 1.12 times more volatile than Voya Index Plus. It trades about 0.09 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.06 per unit of risk. If you would invest 5,830 in Allianzgi Technology Fund on September 4, 2024 and sell it today you would earn a total of 3,067 from holding Allianzgi Technology Fund or generate 52.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Allianzgi Technology Fund vs. Voya Index Plus
Performance |
| Timeline |
| Allianzgi Technology |
| Voya Index Plus |
Allianzgi Technology and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Technology and Voya Index
The main advantage of trading using opposite Allianzgi Technology and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Technology 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.| Allianzgi Technology vs. Goldman Sachs Strategic | Allianzgi Technology vs. Red Oak Technology | Allianzgi Technology vs. Kinetics Internet Fund | Allianzgi Technology vs. Tomorrows Scholar College |
| Voya Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index vs. Voya Limited Maturity |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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