Correlation Between Vy Baron and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Vy Baron and Voya Bond 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 Vy Baron and Voya Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vy Baron Growth and Voya Bond Index, you can compare the effects of market volatilities on Vy Baron and Voya Bond 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 Vy Baron with a short position of Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy Baron and Voya Bond.
Diversification Opportunities for Vy Baron and Voya Bond
Very good diversification
The 3 months correlation between IBSSX and Voya is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Vy Baron Growth and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Vy Baron 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 Vy Baron Growth are associated (or correlated) with Voya Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Vy Baron i.e., Vy Baron and Voya Bond go up and down completely randomly.
Pair Corralation between Vy Baron and Voya Bond
Assuming the 90 days horizon Vy Baron Growth is expected to generate 2.55 times more return on investment than Voya Bond. However, Vy Baron is 2.55 times more volatile than Voya Bond Index. It trades about 0.04 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.07 per unit of risk. If you would invest 2,231 in Vy Baron Growth on September 14, 2024 and sell it today you would earn a total of 210.00 from holding Vy Baron Growth or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Vy Baron Growth vs. Voya Bond Index
Performance |
| Timeline |
| Vy Baron Growth |
| Voya Bond Index |
Vy Baron and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vy Baron and Voya Bond
The main advantage of trading using opposite Vy Baron and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Baron position performs unexpectedly, Voya Bond 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 Bond will offset losses from the drop in Voya Bond's long position.| Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Limited Maturity | Vy Baron vs. Voya Limited Maturity |
| Voya Bond vs. Voya Bond Index | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Bond Index |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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