Correlation Between Voya Global and IShares International
Can any of the company-specific risk be diversified away by investing in both Voya Global and IShares International 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 International 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 International Dividend, you can compare the effects of market volatilities on Voya Global and IShares International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and IShares International.
Diversification Opportunities for Voya Global and IShares International
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and IShares is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Advantage and iShares International Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares International has no effect on the direction of Voya Global i.e., Voya Global and IShares International go up and down completely randomly.
Pair Corralation between Voya Global and IShares International
Considering the 90-day investment horizon Voya Global Advantage is expected to generate 0.9 times more return on investment than IShares International. However, Voya Global Advantage is 1.11 times less risky than IShares International. It trades about 0.13 of its potential returns per unit of risk. iShares International Dividend is currently generating about 0.07 per unit of risk. If you would invest 712.00 in Voya Global Advantage on September 2, 2024 and sell it today you would earn a total of 260.00 from holding Voya Global Advantage or generate 36.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Global Advantage vs. iShares International Dividend
Performance |
| Timeline |
| Voya Global Advantage |
| iShares International |
Voya Global and IShares International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and IShares International
The main advantage of trading using opposite Voya Global and IShares International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, IShares International 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 International will offset losses from the drop in IShares International'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 |
| IShares International vs. iShares MSCI Intl | IShares International vs. iShares MSCI Intl | IShares International vs. iShares MSCI Intl | IShares International vs. iShares Currency Hedged |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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