Correlation Between Voya Floating and Virtus Multi
Can any of the company-specific risk be diversified away by investing in both Voya Floating and Virtus Multi 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 Floating and Virtus Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Floating Rate and Virtus Multi Strategy Target, you can compare the effects of market volatilities on Voya Floating and Virtus Multi 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 Floating with a short position of Virtus Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Floating and Virtus Multi.
Diversification Opportunities for Voya Floating and Virtus Multi
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Voya and Virtus is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Voya Floating Rate and Virtus Multi Strategy Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Multi Strategy and Voya Floating 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 Floating Rate are associated (or correlated) with Virtus Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Multi Strategy has no effect on the direction of Voya Floating i.e., Voya Floating and Virtus Multi go up and down completely randomly.
Pair Corralation between Voya Floating and Virtus Multi
Assuming the 90 days horizon Voya Floating is expected to generate 1.44 times less return on investment than Virtus Multi. But when comparing it to its historical volatility, Voya Floating Rate is 1.41 times less risky than Virtus Multi. It trades about 0.22 of its potential returns per unit of risk. Virtus Multi Strategy Target is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,794 in Virtus Multi Strategy Target on October 25, 2024 and sell it today you would earn a total of 16.00 from holding Virtus Multi Strategy Target or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Floating Rate vs. Virtus Multi Strategy Target
Performance |
| Timeline |
| Voya Floating Rate |
| Virtus Multi Strategy |
Voya Floating and Virtus Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Floating and Virtus Multi
The main advantage of trading using opposite Voya Floating and Virtus Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Floating position performs unexpectedly, Virtus Multi 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 Virtus Multi will offset losses from the drop in Virtus Multi's long position.| Voya Floating vs. Global Diversified Income | Voya Floating vs. Stone Ridge Diversified | Voya Floating vs. Jhancock Diversified Macro | Voya Floating vs. Lord Abbett Diversified |
| Virtus Multi vs. Morningstar Defensive Bond | Virtus Multi vs. Artisan High Income | Virtus Multi vs. T Rowe Price | Virtus Multi vs. Pace Municipal Fixed |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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