Correlation Between Pro Blend and Voya Index
Can any of the company-specific risk be diversified away by investing in both Pro Blend 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 Pro Blend and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Moderate Term and Voya Index Solution, you can compare the effects of market volatilities on Pro Blend 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 Pro Blend with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Blend and Voya Index.
Diversification Opportunities for Pro Blend and Voya Index
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pro and Voya is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Moderate Term and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Pro Blend 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 Pro Blend Moderate Term 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 Solution has no effect on the direction of Pro Blend i.e., Pro Blend and Voya Index go up and down completely randomly.
Pair Corralation between Pro Blend and Voya Index
Assuming the 90 days horizon Pro Blend Moderate Term is expected to generate 0.74 times more return on investment than Voya Index. However, Pro Blend Moderate Term is 1.36 times less risky than Voya Index. It trades about 0.24 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.16 per unit of risk. If you would invest 1,481 in Pro Blend Moderate Term on September 14, 2024 and sell it today you would earn a total of 24.00 from holding Pro Blend Moderate Term or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Moderate Term vs. Voya Index Solution
Performance |
| Timeline |
| Pro Blend Moderate |
| Voya Index Solution |
Pro Blend and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Blend and Voya Index
The main advantage of trading using opposite Pro Blend and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Blend 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.| Pro Blend vs. Manning Napier Callodine | Pro Blend vs. Manning Napier Callodine | Pro Blend vs. Manning Napier Callodine | Pro Blend vs. Pro Blend Extended Term |
| Voya Index vs. Fidelity Managed Retirement | Voya Index vs. Qs Moderate Growth | Voya Index vs. Pro Blend Moderate Term | Voya Index vs. Franklin Lifesmart Retirement |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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