Correlation Between Voya Bond and Vy Baron
Can any of the company-specific risk be diversified away by investing in both Voya Bond and Vy Baron 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 Bond and Vy Baron 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 Vy Baron Growth, you can compare the effects of market volatilities on Voya Bond and Vy Baron 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 Bond with a short position of Vy Baron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and Vy Baron.
Diversification Opportunities for Voya Bond and Vy Baron
Very good diversification
The 3 months correlation between Voya and IBSSX is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Vy Baron Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Baron Growth and Voya Bond 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 Vy Baron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Baron Growth has no effect on the direction of Voya Bond i.e., Voya Bond and Vy Baron go up and down completely randomly.
Pair Corralation between Voya Bond and Vy Baron
Assuming the 90 days horizon Voya Bond is expected to generate 2.09 times less return on investment than Vy Baron. But when comparing it to its historical volatility, Voya Bond Index is 2.51 times less risky than Vy Baron. It trades about 0.04 of its potential returns per unit of risk. Vy Baron Growth is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,170 in Vy Baron Growth on September 14, 2024 and sell it today you would earn a total of 293.00 from holding Vy Baron Growth or generate 13.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Bond Index vs. Vy Baron Growth
Performance |
| Timeline |
| Voya Bond Index |
| Vy Baron Growth |
Voya Bond and Vy Baron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and Vy Baron
The main advantage of trading using opposite Voya Bond and Vy Baron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, Vy Baron 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 Vy Baron will offset losses from the drop in Vy Baron's long position.| Voya Bond vs. Franklin Emerging Market | Voya Bond vs. Eagle Mlp Strategy | Voya Bond vs. Black Oak Emerging | Voya Bond vs. Dws Emerging Markets |
| Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Limited Maturity | Vy Baron vs. Voya Limited Maturity |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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