Correlation Between Voya Intermediate and Sp Midcap
Can any of the company-specific risk be diversified away by investing in both Voya Intermediate and Sp Midcap 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 Sp Midcap 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 Sp Midcap Index, you can compare the effects of market volatilities on Voya Intermediate and Sp Midcap 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 Sp Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Intermediate and Sp Midcap.
Diversification Opportunities for Voya Intermediate and Sp Midcap
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and SPMIX is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Sp Midcap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sp Midcap Index 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 Sp Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sp Midcap Index has no effect on the direction of Voya Intermediate i.e., Voya Intermediate and Sp Midcap go up and down completely randomly.
Pair Corralation between Voya Intermediate and Sp Midcap
Assuming the 90 days horizon Voya Intermediate Bond is expected to generate 0.14 times more return on investment than Sp Midcap. However, Voya Intermediate Bond is 7.05 times less risky than Sp Midcap. It trades about 0.11 of its potential returns per unit of risk. Sp Midcap Index is currently generating about -0.01 per unit of risk. If you would invest 870.00 in Voya Intermediate Bond on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Voya Intermediate Bond or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Sp Midcap Index
Performance |
| Timeline |
| Voya Intermediate Bond |
| Sp Midcap Index |
Voya Intermediate and Sp Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Intermediate and Sp Midcap
The main advantage of trading using opposite Voya Intermediate and Sp Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Intermediate position performs unexpectedly, Sp Midcap 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 Sp Midcap will offset losses from the drop in Sp Midcap's long position.| Voya Intermediate vs. Mesirow Financial Small | Voya Intermediate vs. 1919 Financial Services | Voya Intermediate vs. Vanguard Financials Index | Voya Intermediate vs. Fidelity Advisor Financial |
| Sp Midcap vs. T Rowe Price | Sp Midcap vs. Qs Moderate Growth | Sp Midcap vs. Hood River New | Sp Midcap vs. T Rowe Price |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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