Correlation Between Voya Bond and Voya Jpmorgan
Can any of the company-specific risk be diversified away by investing in both Voya Bond and Voya Jpmorgan 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 Voya Jpmorgan 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 Jpmorgan Small, you can compare the effects of market volatilities on Voya Bond and Voya Jpmorgan 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 Voya Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and Voya Jpmorgan.
Diversification Opportunities for Voya Bond and Voya Jpmorgan
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Voya is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Voya Jpmorgan Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Jpmorgan Small 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 Voya Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Jpmorgan Small has no effect on the direction of Voya Bond i.e., Voya Bond and Voya Jpmorgan go up and down completely randomly.
Pair Corralation between Voya Bond and Voya Jpmorgan
Assuming the 90 days horizon Voya Bond Index is expected to under-perform the Voya Jpmorgan. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Bond Index is 3.98 times less risky than Voya Jpmorgan. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Voya Jpmorgan Small is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,646 in Voya Jpmorgan Small on August 25, 2024 and sell it today you would earn a total of 124.00 from holding Voya Jpmorgan Small or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Bond Index vs. Voya Jpmorgan Small
Performance |
| Timeline |
| Voya Bond Index |
| Voya Jpmorgan Small |
Voya Bond and Voya Jpmorgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and Voya Jpmorgan
The main advantage of trading using opposite Voya Bond and Voya Jpmorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, Voya Jpmorgan 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 Jpmorgan will offset losses from the drop in Voya Jpmorgan's long position.| Voya Bond vs. Fidelity Series Government | Voya Bond vs. Blackrock Government Bond | Voya Bond vs. Dws Government Money | Voya Bond vs. Inverse Government Long |
| Voya Jpmorgan vs. Voya Bond Index | Voya Jpmorgan vs. Voya Bond Index | Voya Jpmorgan vs. Voya Limited Maturity | Voya Jpmorgan 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |