Correlation Between Growth Fund and Voya Large
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Voya Large 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 Growth Fund and Voya Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Voya Large Cap Growth, you can compare the effects of market volatilities on Growth Fund and Voya Large 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 Growth Fund with a short position of Voya Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Voya Large.
Diversification Opportunities for Growth Fund and Voya Large
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Growth and Voya is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Voya Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Large Cap and Growth Fund 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 Growth Fund Of are associated (or correlated) with Voya Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Large Cap has no effect on the direction of Growth Fund i.e., Growth Fund and Voya Large go up and down completely randomly.
Pair Corralation between Growth Fund and Voya Large
Assuming the 90 days horizon Growth Fund is expected to generate 1.35 times less return on investment than Voya Large. But when comparing it to its historical volatility, Growth Fund Of is 1.06 times less risky than Voya Large. It trades about 0.1 of its potential returns per unit of risk. Voya Large Cap Growth is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,191 in Voya Large Cap Growth on September 12, 2024 and sell it today you would earn a total of 2,203 from holding Voya Large Cap Growth or generate 52.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Voya Large Cap Growth
Performance |
| Timeline |
| Growth Fund |
| Voya Large Cap |
Growth Fund and Voya Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Voya Large
The main advantage of trading using opposite Growth Fund and Voya Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Voya Large 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 Large will offset losses from the drop in Voya Large's long position.| Growth Fund vs. American Funds The | Growth Fund vs. American Funds The | Growth Fund vs. Growth Fund Of | Growth Fund vs. Growth Fund Of |
| Voya Large vs. American Funds The | Voya Large vs. American Funds The | Voya Large vs. Growth Fund Of | Voya Large vs. Growth Fund Of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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