Correlation Between Voya Us and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Voya Us and Voya Solution 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 Solution 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 Solution 2055, you can compare the effects of market volatilities on Voya Us and Voya Solution 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 Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Us and Voya Solution.
Diversification Opportunities for Voya Us and Voya Solution
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Voya is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Voya Solution 2055 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution 2055 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 Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution 2055 has no effect on the direction of Voya Us i.e., Voya Us and Voya Solution go up and down completely randomly.
Pair Corralation between Voya Us and Voya Solution
Assuming the 90 days horizon Voya Us is expected to generate 3.02 times less return on investment than Voya Solution. But when comparing it to its historical volatility, Voya Bond Index is 1.74 times less risky than Voya Solution. It trades about 0.07 of its potential returns per unit of risk. Voya Solution 2055 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,254 in Voya Solution 2055 on August 30, 2024 and sell it today you would earn a total of 22.00 from holding Voya Solution 2055 or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Voya Bond Index vs. Voya Solution 2055
Performance |
| Timeline |
| Voya Bond Index |
| Voya Solution 2055 |
Voya Us and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Us and Voya Solution
The main advantage of trading using opposite Voya Us and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Us position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.| Voya Us vs. Putnam Convertible Incm Gwth | Voya Us vs. Calamos Dynamic Convertible | Voya Us vs. Absolute Convertible Arbitrage | Voya Us vs. Lord Abbett Convertible |
| Voya Solution vs. Eic Value Fund | Voya Solution vs. Shelton Funds | Voya Solution vs. Barings Active Short | Voya Solution 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |