Correlation Between James Balanced: and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both James Balanced: 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 James Balanced: 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 James Balanced Golden and Voya Multi Manager International, you can compare the effects of market volatilities on James Balanced: 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 James Balanced: with a short position of Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced: and Voya Multi-manager.
Diversification Opportunities for James Balanced: and Voya Multi-manager
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JAMES and Voya is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden 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 James Balanced: 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 James Balanced Golden 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 James Balanced: i.e., James Balanced: and Voya Multi-manager go up and down completely randomly.
Pair Corralation between James Balanced: and Voya Multi-manager
Assuming the 90 days horizon James Balanced: is expected to generate 1.48 times less return on investment than Voya Multi-manager. But when comparing it to its historical volatility, James Balanced Golden is 1.65 times less risky than Voya Multi-manager. It trades about 0.2 of its potential returns per unit of risk. Voya Multi Manager International is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,268 in Voya Multi Manager International on November 4, 2024 and sell it today you would earn a total of 160.00 from holding Voya Multi Manager International or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Voya Multi Manager Internation
Performance |
| Timeline |
| James Balanced Golden |
| Voya Multi Manager |
James Balanced: and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced: and Voya Multi-manager
The main advantage of trading using opposite James Balanced: and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced: 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.| James Balanced: vs. Permanent Portfolio Class | James Balanced: vs. Berwyn Income Fund | James Balanced: vs. Large Cap Fund | James Balanced: vs. Westcore Plus Bond |
| Voya Multi-manager vs. Avantis Large Cap | Voya Multi-manager vs. Calvert Large Cap | Voya Multi-manager vs. Qs Large Cap | Voya Multi-manager vs. Transamerica Large Cap |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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