Correlation Between Federated Government and Voya Government
Can any of the company-specific risk be diversified away by investing in both Federated Government and Voya Government 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 Federated Government and Voya Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Government Income and Voya Government Money, you can compare the effects of market volatilities on Federated Government and Voya Government 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 Federated Government with a short position of Voya Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Government and Voya Government.
Diversification Opportunities for Federated Government and Voya Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Government Income and Voya Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Government Money and Federated Government 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 Federated Government Income are associated (or correlated) with Voya Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Government Money has no effect on the direction of Federated Government i.e., Federated Government and Voya Government go up and down completely randomly.
Pair Corralation between Federated Government and Voya Government
Assuming the 90 days horizon Federated Government is expected to generate 1.22 times less return on investment than Voya Government. In addition to that, Federated Government is 3.62 times more volatile than Voya Government Money. It trades about 0.03 of its total potential returns per unit of risk. Voya Government Money is currently generating about 0.13 per unit of volatility. If you would invest 92.00 in Voya Government Money on November 27, 2024 and sell it today you would earn a total of 8.00 from holding Voya Government Money or generate 8.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Federated Government Income vs. Voya Government Money
Performance |
Timeline |
Federated Government |
Voya Government Money |
Federated Government and Voya Government Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Federated Government and Voya Government
The main advantage of trading using opposite Federated Government and Voya Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Government position performs unexpectedly, Voya Government 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 Government will offset losses from the drop in Voya Government's long position.Federated Government vs. The Hartford Inflation | ||
Federated Government vs. Ab Bond Inflation | ||
Federated Government vs. Ab Bond Inflation | ||
Federated Government vs. Credit Suisse Multialternative |
Voya Government vs. Artisan High Income | ||
Voya Government vs. T Rowe Price | ||
Voya Government vs. Baird Quality Intermediate | ||
Voya Government vs. Ambrus Core Bond |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |