Correlation Between Voya Global and JPMorgan BetaBuilders
Can any of the company-specific risk be diversified away by investing in both Voya Global and JPMorgan BetaBuilders 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 Global and JPMorgan BetaBuilders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Advantage and JPMorgan BetaBuilders International, you can compare the effects of market volatilities on Voya Global and JPMorgan BetaBuilders 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 Global with a short position of JPMorgan BetaBuilders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and JPMorgan BetaBuilders.
Diversification Opportunities for Voya Global and JPMorgan BetaBuilders
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and JPMorgan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Advantage and JPMorgan BetaBuilders Internat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan BetaBuilders and Voya Global 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 Global Advantage are associated (or correlated) with JPMorgan BetaBuilders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan BetaBuilders has no effect on the direction of Voya Global i.e., Voya Global and JPMorgan BetaBuilders go up and down completely randomly.
Pair Corralation between Voya Global and JPMorgan BetaBuilders
Considering the 90-day investment horizon Voya Global Advantage is expected to generate 0.68 times more return on investment than JPMorgan BetaBuilders. However, Voya Global Advantage is 1.47 times less risky than JPMorgan BetaBuilders. It trades about 0.37 of its potential returns per unit of risk. JPMorgan BetaBuilders International is currently generating about -0.01 per unit of risk. If you would invest 930.00 in Voya Global Advantage on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Voya Global Advantage or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Voya Global Advantage vs. JPMorgan BetaBuilders Internat
Performance |
| Timeline |
| Voya Global Advantage |
| JPMorgan BetaBuilders |
Voya Global and JPMorgan BetaBuilders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and JPMorgan BetaBuilders
The main advantage of trading using opposite Voya Global and JPMorgan BetaBuilders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, JPMorgan BetaBuilders 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 JPMorgan BetaBuilders will offset losses from the drop in JPMorgan BetaBuilders' long position.| Voya Global vs. Western Asset High | Voya Global vs. Western Asset Global | Voya Global vs. Western Asset High | Voya Global vs. Voya Global Equity |
| JPMorgan BetaBuilders vs. iShares ESG Aggregate | JPMorgan BetaBuilders vs. SPDR MSCI Emerging | JPMorgan BetaBuilders vs. Aquagold International | JPMorgan BetaBuilders vs. Thrivent High Yield |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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