Correlation Between Voya Emerging and Virtus AllianzGI
Can any of the company-specific risk be diversified away by investing in both Voya Emerging and Virtus AllianzGI 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 Emerging and Virtus AllianzGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Emerging Markets and Virtus AllianzGI Convertible, you can compare the effects of market volatilities on Voya Emerging and Virtus AllianzGI 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 Emerging with a short position of Virtus AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Emerging and Virtus AllianzGI.
Diversification Opportunities for Voya Emerging and Virtus AllianzGI
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Virtus is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Voya Emerging Markets and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con and Voya Emerging 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 Emerging Markets are associated (or correlated) with Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of Voya Emerging i.e., Voya Emerging and Virtus AllianzGI go up and down completely randomly.
Pair Corralation between Voya Emerging and Virtus AllianzGI
Considering the 90-day investment horizon Voya Emerging Markets is expected to generate 1.42 times more return on investment than Virtus AllianzGI. However, Voya Emerging is 1.42 times more volatile than Virtus AllianzGI Convertible. It trades about 0.08 of its potential returns per unit of risk. Virtus AllianzGI Convertible is currently generating about 0.06 per unit of risk. If you would invest 436.00 in Voya Emerging Markets on September 3, 2024 and sell it today you would earn a total of 81.00 from holding Voya Emerging Markets or generate 18.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Emerging Markets vs. Virtus AllianzGI Convertible
Performance |
| Timeline |
| Voya Emerging Markets |
| Virtus AllianzGI Con |
Voya Emerging and Virtus AllianzGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Emerging and Virtus AllianzGI
The main advantage of trading using opposite Voya Emerging and Virtus AllianzGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Emerging position performs unexpectedly, Virtus AllianzGI 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 AllianzGI will offset losses from the drop in Virtus AllianzGI's long position.| Voya Emerging vs. Nuveen Real Asset | Voya Emerging vs. Nuveen Mortgage Opportunity | Voya Emerging vs. Pgim Global High | Voya Emerging vs. Nuveen Core Equity |
| Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. Oxford Lane Capital | Virtus AllianzGI vs. The Gabelli Utility |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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