Correlation Between DAX Index and Voya Financial
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By analyzing existing cross correlation between DAX Index and Voya Financial, you can compare the effects of market volatilities on DAX Index and Voya Financial 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 DAX Index with a short position of Voya Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Voya Financial.
Diversification Opportunities for DAX Index and Voya Financial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Voya is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Voya Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Financial and DAX Index 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 DAX Index are associated (or correlated) with Voya Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Financial has no effect on the direction of DAX Index i.e., DAX Index and Voya Financial go up and down completely randomly.
Pair Corralation between DAX Index and Voya Financial
Assuming the 90 days trading horizon DAX Index is expected to generate 0.4 times more return on investment than Voya Financial. However, DAX Index is 2.48 times less risky than Voya Financial. It trades about 0.11 of its potential returns per unit of risk. Voya Financial is currently generating about 0.01 per unit of risk. If you would invest 1,816,352 in DAX Index on September 19, 2024 and sell it today you would earn a total of 208,285 from holding DAX Index or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
DAX Index vs. Voya Financial
Performance |
| Timeline |
DAX Index and Voya Financial Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Voya Financial
Pair trading matchups for Voya Financial
Pair Trading with DAX Index and Voya Financial
The main advantage of trading using opposite DAX Index and Voya Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Voya Financial 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 Financial will offset losses from the drop in Voya Financial's long position.| DAX Index vs. Sekisui Chemical Co | DAX Index vs. United Internet AG | DAX Index vs. X FAB Silicon Foundries | DAX Index vs. TIANDE CHEMICAL |
| Voya Financial vs. Charoen Pokphand Foods | Voya Financial vs. CN MODERN DAIRY | Voya Financial vs. INDOFOOD AGRI RES | Voya Financial vs. SIDETRADE EO 1 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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