Correlation Between Voya Intermediate and Commodities Strategy
Can any of the company-specific risk be diversified away by investing in both Voya Intermediate and Commodities Strategy 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 Intermediate and Commodities Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Intermediate Bond and Commodities Strategy Fund, you can compare the effects of market volatilities on Voya Intermediate and Commodities Strategy 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 Intermediate with a short position of Commodities Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Intermediate and Commodities Strategy.
Diversification Opportunities for Voya Intermediate and Commodities Strategy
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Commodities is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Commodities Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodities Strategy and Voya Intermediate 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 Intermediate Bond are associated (or correlated) with Commodities Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodities Strategy has no effect on the direction of Voya Intermediate i.e., Voya Intermediate and Commodities Strategy go up and down completely randomly.
Pair Corralation between Voya Intermediate and Commodities Strategy
Assuming the 90 days horizon Voya Intermediate Bond is expected to generate 0.33 times more return on investment than Commodities Strategy. However, Voya Intermediate Bond is 2.99 times less risky than Commodities Strategy. It trades about 0.11 of its potential returns per unit of risk. Commodities Strategy Fund is currently generating about 0.0 per unit of risk. If you would invest 794.00 in Voya Intermediate Bond on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Voya Intermediate Bond or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Commodities Strategy Fund
Performance |
| Timeline |
| Voya Intermediate Bond |
| Commodities Strategy |
Voya Intermediate and Commodities Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Intermediate and Commodities Strategy
The main advantage of trading using opposite Voya Intermediate and Commodities Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Intermediate position performs unexpectedly, Commodities Strategy 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 Commodities Strategy will offset losses from the drop in Commodities Strategy's long position.| Voya Intermediate vs. Bbh Intermediate Municipal | Voya Intermediate vs. Alliancebernstein National Municipal | Voya Intermediate vs. Blrc Sgy Mnp | Voya Intermediate vs. The National Tax Free |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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