Correlation Between Voya Us and Voya Large
Can any of the company-specific risk be diversified away by investing in both Voya Us and Voya Large 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 Us and Voya Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Bond Index and Voya Large Cap, you can compare the effects of market volatilities on Voya Us and Voya Large 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 Us with a short position of Voya Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Us and Voya Large.
Diversification Opportunities for Voya Us and Voya Large
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VOYA and Voya is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Voya Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Large Cap and Voya Us 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 Bond Index are associated (or correlated) with Voya Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Large Cap has no effect on the direction of Voya Us i.e., Voya Us and Voya Large go up and down completely randomly.
Pair Corralation between Voya Us and Voya Large
Assuming the 90 days horizon Voya Bond Index is expected to under-perform the Voya Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Bond Index is 2.01 times less risky than Voya Large. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Voya Large Cap is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 586.00 in Voya Large Cap on August 29, 2024 and sell it today you would earn a total of 60.00 from holding Voya Large Cap or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Voya Bond Index vs. Voya Large Cap
Performance |
| Timeline |
| Voya Bond Index |
| Voya Large Cap |
Voya Us and Voya Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Us and Voya Large
The main advantage of trading using opposite Voya Us and Voya Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Us position performs unexpectedly, Voya Large 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 Voya Large will offset losses from the drop in Voya Large's long position.| Voya Us vs. Dreyfus Government Cash | Voya Us vs. Blackrock Government Bond | Voya Us vs. Federated Government Ultrashort | Voya Us vs. Us Government Securities |
| Voya Large vs. Bbh Intermediate Municipal | Voya Large vs. Maryland Tax Free Bond | Voya Large vs. Calamos Dynamic Convertible | Voya Large vs. Versatile Bond Portfolio |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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