Correlation Between Eic Value and Voya Index
Can any of the company-specific risk be diversified away by investing in both Eic Value 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 Eic Value and Voya Index 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 Index Plus, you can compare the effects of market volatilities on Eic Value 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 Eic Value with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Voya Index.
Diversification Opportunities for Eic Value and Voya Index
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eic and Voya is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value 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 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 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 Eic Value i.e., Eic Value and Voya Index go up and down completely randomly.
Pair Corralation between Eic Value and Voya Index
Assuming the 90 days horizon Eic Value is expected to generate 2.21 times less return on investment than Voya Index. But when comparing it to its historical volatility, Eic Value Fund is 1.26 times less risky than Voya Index. It trades about 0.13 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,801 in Voya Index Plus on September 4, 2024 and sell it today you would earn a total of 310.00 from holding Voya Index Plus or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Voya Index Plus
Performance |
| Timeline |
| Eic Value Fund |
| Voya Index Plus |
Eic Value and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Voya Index
The main advantage of trading using opposite Eic Value and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value 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.| Eic Value vs. Qs Large Cap | Eic Value vs. Balanced Fund Investor | Eic Value vs. Abr 7525 Volatility | Eic Value vs. Bbh Intermediate Municipal |
| Voya Index vs. Commodities Strategy Fund | Voya Index vs. T Rowe Price | Voya Index vs. Eic Value Fund | Voya Index vs. Nasdaq 100 Fund Class |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets |