Correlation Between Matson Money and Voya Index
Can any of the company-specific risk be diversified away by investing in both Matson Money 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 Matson Money and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matson Money Fixed and Voya Index Plus, you can compare the effects of market volatilities on Matson Money 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 Matson Money with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Voya Index.
Diversification Opportunities for Matson Money and Voya Index
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MATSON and Voya is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Fixed 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 Matson Money 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 Matson Money Fixed 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 Matson Money i.e., Matson Money and Voya Index go up and down completely randomly.
Pair Corralation between Matson Money and Voya Index
Assuming the 90 days horizon Matson Money is expected to generate 6.87 times less return on investment than Voya Index. But when comparing it to its historical volatility, Matson Money Fixed is 9.5 times less risky than Voya Index. It trades about 0.14 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,786 in Voya Index Plus on August 28, 2024 and sell it today you would earn a total of 459.00 from holding Voya Index Plus or generate 25.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Matson Money Fixed vs. Voya Index Plus
Performance |
| Timeline |
| Matson Money Fixed |
| Voya Index Plus |
Matson Money and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matson Money and Voya Index
The main advantage of trading using opposite Matson Money and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson Money 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.| Matson Money vs. Pace High Yield | Matson Money vs. Pace High Yield | Matson Money vs. Pimco High Yield | Matson Money vs. Blackrock High Yield |
| Voya Index vs. Ep Emerging Markets | Voya Index vs. Ashmore Emerging Markets | Voya Index vs. Western Assets Emerging | Voya Index vs. Investec Emerging Markets |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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