Correlation Between Voya Global and NuShares ETF
Can any of the company-specific risk be diversified away by investing in both Voya Global and NuShares ETF 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 NuShares ETF 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 NuShares ETF Trust, you can compare the effects of market volatilities on Voya Global and NuShares ETF 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 NuShares ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and NuShares ETF.
Diversification Opportunities for Voya Global and NuShares ETF
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and NuShares is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Advantage and NuShares ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuShares ETF Trust 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 NuShares ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuShares ETF Trust has no effect on the direction of Voya Global i.e., Voya Global and NuShares ETF go up and down completely randomly.
Pair Corralation between Voya Global and NuShares ETF
Considering the 90-day investment horizon Voya Global Advantage is expected to generate 0.69 times more return on investment than NuShares ETF. However, Voya Global Advantage is 1.45 times less risky than NuShares ETF. It trades about 0.19 of its potential returns per unit of risk. NuShares ETF Trust is currently generating about 0.01 per unit of risk. If you would invest 839.00 in Voya Global Advantage on September 1, 2024 and sell it today you would earn a total of 133.00 from holding Voya Global Advantage or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Voya Global Advantage vs. NuShares ETF Trust
Performance |
| Timeline |
| Voya Global Advantage |
| NuShares ETF Trust |
Voya Global and NuShares ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and NuShares ETF
The main advantage of trading using opposite Voya Global and NuShares ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, NuShares ETF 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 NuShares ETF will offset losses from the drop in NuShares ETF'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 |
| NuShares ETF vs. NuShares ETF Trust | NuShares ETF vs. Nuveen ESG Small Cap | NuShares ETF vs. Nuveen ESG Large Cap | NuShares ETF vs. Nuveen ESG Mid Cap |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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