Correlation Between Voya Bond and The Gold
Can any of the company-specific risk be diversified away by investing in both Voya Bond and The Gold 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 The Gold 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 The Gold Bullion, you can compare the effects of market volatilities on Voya Bond and The Gold 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 The Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and The Gold.
Diversification Opportunities for Voya Bond and The Gold
Very good diversification
The 3 months correlation between Voya and The is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and The Gold Bullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bullion 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 The Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bullion has no effect on the direction of Voya Bond i.e., Voya Bond and The Gold go up and down completely randomly.
Pair Corralation between Voya Bond and The Gold
Assuming the 90 days horizon Voya Bond Index is expected to under-perform the The Gold. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Bond Index is 3.15 times less risky than The Gold. The mutual fund trades about -0.16 of its potential returns per unit of risk. The The Gold Bullion is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,632 in The Gold Bullion on August 28, 2024 and sell it today you would lose (30.00) from holding The Gold Bullion or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Bond Index vs. The Gold Bullion
Performance |
| Timeline |
| Voya Bond Index |
| Gold Bullion |
Voya Bond and The Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and The Gold
The main advantage of trading using opposite Voya Bond and The Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, The Gold 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 The Gold will offset losses from the drop in The Gold's long position.| Voya Bond vs. The Gold Bullion | Voya Bond vs. Goldman Sachs Mlp | Voya Bond vs. Oppenheimer Gold Special | Voya Bond vs. Gabelli Gold Fund |
| The Gold vs. Aquagold International | The Gold vs. Morningstar Unconstrained Allocation | The Gold vs. Thrivent High Yield | The Gold vs. Via Renewables |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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