Correlation Between Voya Index and Alphacentric Symmetry
Can any of the company-specific risk be diversified away by investing in both Voya Index and Alphacentric Symmetry 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 Index and Alphacentric Symmetry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Index Solution and Alphacentric Symmetry Strategy, you can compare the effects of market volatilities on Voya Index and Alphacentric Symmetry 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 Index with a short position of Alphacentric Symmetry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Alphacentric Symmetry.
Diversification Opportunities for Voya Index and Alphacentric Symmetry
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Alphacentric is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Solution and Alphacentric Symmetry Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphacentric Symmetry and Voya 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 Voya Index Solution are associated (or correlated) with Alphacentric Symmetry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphacentric Symmetry has no effect on the direction of Voya Index i.e., Voya Index and Alphacentric Symmetry go up and down completely randomly.
Pair Corralation between Voya Index and Alphacentric Symmetry
Assuming the 90 days horizon Voya Index Solution is expected to under-perform the Alphacentric Symmetry. In addition to that, Voya Index is 2.03 times more volatile than Alphacentric Symmetry Strategy. It trades about -0.18 of its total potential returns per unit of risk. Alphacentric Symmetry Strategy is currently generating about -0.23 per unit of volatility. If you would invest 1,261 in Alphacentric Symmetry Strategy on October 12, 2024 and sell it today you would lose (25.00) from holding Alphacentric Symmetry Strategy or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Index Solution vs. Alphacentric Symmetry Strategy
Performance |
| Timeline |
| Voya Index Solution |
| Alphacentric Symmetry |
Voya Index and Alphacentric Symmetry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Alphacentric Symmetry
The main advantage of trading using opposite Voya Index and Alphacentric Symmetry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Alphacentric Symmetry 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 Alphacentric Symmetry will offset losses from the drop in Alphacentric Symmetry's long position.| Voya Index vs. Nasdaq 100 2x Strategy | Voya Index vs. Alphacentric Symmetry Strategy | Voya Index vs. Eagle Mlp Strategy | Voya Index vs. Delaware Emerging Markets |
| Alphacentric Symmetry vs. T Rowe Price | Alphacentric Symmetry vs. Metropolitan West Porate | Alphacentric Symmetry vs. Alliancebernstein Bond | Alphacentric Symmetry vs. Georgia Tax Free Bond |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |