Correlation Between Voya Global and IShares Global
Can any of the company-specific risk be diversified away by investing in both Voya Global and IShares Global 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 IShares Global 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 iShares Global Clean, you can compare the effects of market volatilities on Voya Global and IShares Global 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 IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and IShares Global.
Diversification Opportunities for Voya Global and IShares Global
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voya and IShares is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Advantage and iShares Global Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Clean 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 IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Clean has no effect on the direction of Voya Global i.e., Voya Global and IShares Global go up and down completely randomly.
Pair Corralation between Voya Global and IShares Global
Considering the 90-day investment horizon Voya Global Advantage is expected to generate 0.3 times more return on investment than IShares Global. However, Voya Global Advantage is 3.28 times less risky than IShares Global. It trades about 0.17 of its potential returns per unit of risk. iShares Global Clean is currently generating about -0.18 per unit of risk. If you would invest 941.00 in Voya Global Advantage on August 24, 2024 and sell it today you would earn a total of 21.00 from holding Voya Global Advantage or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Global Advantage vs. iShares Global Clean
Performance |
| Timeline |
| Voya Global Advantage |
| iShares Global Clean |
Voya Global and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and IShares Global
The main advantage of trading using opposite Voya Global and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, IShares Global 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 IShares Global will offset losses from the drop in IShares Global's 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 |
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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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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