Correlation Between Fidelity International and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Fidelity International and Voya Multi-manager 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 Fidelity International and Voya Multi-manager into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity International Small and Voya Multi Manager International, you can compare the effects of market volatilities on Fidelity International and Voya Multi-manager 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 Fidelity International with a short position of Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity International and Voya Multi-manager.
Diversification Opportunities for Fidelity International and Voya Multi-manager
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Voya is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity International Small and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager and Fidelity International 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 Fidelity International Small are associated (or correlated) with Voya Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Fidelity International i.e., Fidelity International and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Fidelity International and Voya Multi-manager
Assuming the 90 days horizon Fidelity International Small is expected to under-perform the Voya Multi-manager. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fidelity International Small is 1.18 times less risky than Voya Multi-manager. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Voya Multi Manager International is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 6,123 in Voya Multi Manager International on September 4, 2024 and sell it today you would lose (7.00) from holding Voya Multi Manager International or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fidelity International Small vs. Voya Multi Manager Internation
Performance |
| Timeline |
| Fidelity International |
| Voya Multi Manager |
Fidelity International and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity International and Voya Multi-manager
The main advantage of trading using opposite Fidelity International and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity International position performs unexpectedly, Voya Multi-manager 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 Multi-manager will offset losses from the drop in Voya Multi-manager's long position.The idea behind Fidelity International Small and Voya Multi Manager International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Voya Multi-manager vs. Voya Bond Index | Voya Multi-manager vs. Voya Bond Index | Voya Multi-manager vs. Voya Limited Maturity | Voya Multi-manager 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |