Correlation Between Voya Us and Voya Strategic
Can any of the company-specific risk be diversified away by investing in both Voya Us and Voya Strategic 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 Strategic 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 Strategic Income, you can compare the effects of market volatilities on Voya Us and Voya Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Us and Voya Strategic.
Diversification Opportunities for Voya Us and Voya Strategic
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Voya Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Strategic Income 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Strategic Income has no effect on the direction of Voya Us i.e., Voya Us and Voya Strategic go up and down completely randomly.
Pair Corralation between Voya Us and Voya Strategic
Assuming the 90 days horizon Voya Us is expected to generate 1.03 times less return on investment than Voya Strategic. In addition to that, Voya Us is 2.11 times more volatile than Voya Strategic Income. It trades about 0.08 of its total potential returns per unit of risk. Voya Strategic Income is currently generating about 0.17 per unit of volatility. If you would invest 892.00 in Voya Strategic Income on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Voya Strategic Income or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Voya Bond Index vs. Voya Strategic Income
Performance |
| Timeline |
| Voya Bond Index |
| Voya Strategic Income |
Voya Us and Voya Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Us and Voya Strategic
The main advantage of trading using opposite Voya Us and Voya Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Us position performs unexpectedly, Voya Strategic 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 Strategic will offset losses from the drop in Voya Strategic's long position.| Voya Us vs. Gmo High Yield | Voya Us vs. Fidelity Capital Income | Voya Us vs. Msift High Yield | Voya Us vs. Western Asset High |
| Voya Strategic vs. Dana Large Cap | Voya Strategic vs. Large Cap Growth Profund | Voya Strategic vs. Qs Large Cap | Voya Strategic vs. Qs Large 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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