Correlation Between Voya Solution and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both Voya Solution and Gateway Fund 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 Voya Solution and Gateway Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Solution Moderately and Gateway Fund Class, you can compare the effects of market volatilities on Voya Solution and Gateway Fund 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 Voya Solution with a short position of Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Gateway Fund.
Diversification Opportunities for Voya Solution and Gateway Fund
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Gateway is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Moderately and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class and Voya Solution 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 Voya Solution Moderately are associated (or correlated) with Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Voya Solution i.e., Voya Solution and Gateway Fund go up and down completely randomly.
Pair Corralation between Voya Solution and Gateway Fund
Assuming the 90 days horizon Voya Solution is expected to generate 1.04 times less return on investment than Gateway Fund. In addition to that, Voya Solution is 1.21 times more volatile than Gateway Fund Class. It trades about 0.16 of its total potential returns per unit of risk. Gateway Fund Class is currently generating about 0.2 per unit of volatility. If you would invest 4,590 in Gateway Fund Class on August 28, 2024 and sell it today you would earn a total of 104.00 from holding Gateway Fund Class or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Voya Solution Moderately vs. Gateway Fund Class
Performance |
| Timeline |
| Voya Solution Moderately |
| Gateway Fund Class |
Voya Solution and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Solution and Gateway Fund
The main advantage of trading using opposite Voya Solution and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.| Voya Solution vs. Allianzgi Convertible Income | Voya Solution vs. Invesco Vertible Securities | Voya Solution vs. Fidelity Vertible Securities | Voya Solution vs. Harbor Vertible Securities |
| Gateway Fund vs. Asg Managed Futures | Gateway Fund vs. Asg Managed Futures | Gateway Fund vs. Natixis Oakmark | Gateway Fund vs. Natixis Oakmark International |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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