Correlation Between Eic Value and Voya Global
Can any of the company-specific risk be diversified away by investing in both Eic Value and Voya Global 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 Eic Value and Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Voya Global Bond, you can compare the effects of market volatilities on Eic Value and Voya Global 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 Eic Value with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Voya Global.
Diversification Opportunities for Eic Value and Voya Global
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eic and VOYA is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond and Eic Value 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 Eic Value Fund are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Eic Value i.e., Eic Value and Voya Global go up and down completely randomly.
Pair Corralation between Eic Value and Voya Global
Assuming the 90 days horizon Eic Value Fund is expected to generate 1.44 times more return on investment than Voya Global. However, Eic Value is 1.44 times more volatile than Voya Global Bond. It trades about 0.13 of its potential returns per unit of risk. Voya Global Bond is currently generating about -0.08 per unit of risk. If you would invest 1,833 in Eic Value Fund on September 2, 2024 and sell it today you would earn a total of 89.00 from holding Eic Value Fund or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Voya Global Bond
Performance |
| Timeline |
| Eic Value Fund |
| Voya Global Bond |
Eic Value and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Voya Global
The main advantage of trading using opposite Eic Value and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Eic Value vs. Alliancebernstein National Municipal | Eic Value vs. Pace Municipal Fixed | Eic Value vs. The National Tax Free | Eic Value vs. Bbh Intermediate Municipal |
| Voya Global vs. Voya Bond Index | Voya Global vs. Voya Bond Index | Voya Global vs. Voya Limited Maturity | Voya Global 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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