Correlation Between Voya Limited and Voya Floating
Can any of the company-specific risk be diversified away by investing in both Voya Limited and Voya Floating 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 Limited and Voya Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Limited Maturity and Voya Floating Rate, you can compare the effects of market volatilities on Voya Limited and Voya Floating 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 Limited with a short position of Voya Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Limited and Voya Floating.
Diversification Opportunities for Voya Limited and Voya Floating
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Voya Limited Maturity and Voya Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Floating Rate and Voya Limited 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 Limited Maturity are associated (or correlated) with Voya Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Floating Rate has no effect on the direction of Voya Limited i.e., Voya Limited and Voya Floating go up and down completely randomly.
Pair Corralation between Voya Limited and Voya Floating
Assuming the 90 days horizon Voya Limited Maturity is expected to generate 1.46 times more return on investment than Voya Floating. However, Voya Limited is 1.46 times more volatile than Voya Floating Rate. It trades about 0.2 of its potential returns per unit of risk. Voya Floating Rate is currently generating about -0.55 per unit of risk. If you would invest 950.00 in Voya Limited Maturity on December 4, 2024 and sell it today you would earn a total of 3.00 from holding Voya Limited Maturity or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Voya Limited Maturity vs. Voya Floating Rate
Performance |
| Timeline |
| Voya Limited Maturity |
| Voya Floating Rate |
Voya Limited and Voya Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Limited and Voya Floating
The main advantage of trading using opposite Voya Limited and Voya Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Limited position performs unexpectedly, Voya Floating 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 Floating will offset losses from the drop in Voya Floating's long position.| Voya Limited vs. Precious Metals And | Voya Limited vs. First Eagle Gold | Voya Limited vs. Sprott Gold Equity | Voya Limited vs. Oppenheimer Gold Special |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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