Correlation Between Voya Limited and Voya Vacs
Can any of the company-specific risk be diversified away by investing in both Voya Limited and Voya Vacs 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 Vacs 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 Vacs Index, you can compare the effects of market volatilities on Voya Limited and Voya Vacs 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 Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Limited and Voya Vacs.
Diversification Opportunities for Voya Limited and Voya Vacs
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Voya and Voya is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Voya Limited Maturity and Voya Vacs Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Index 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 Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Index has no effect on the direction of Voya Limited i.e., Voya Limited and Voya Vacs go up and down completely randomly.
Pair Corralation between Voya Limited and Voya Vacs
Assuming the 90 days horizon Voya Limited Maturity is expected to generate 0.12 times more return on investment than Voya Vacs. However, Voya Limited Maturity is 8.37 times less risky than Voya Vacs. It trades about 0.05 of its potential returns per unit of risk. Voya Vacs Index is currently generating about -0.18 per unit of risk. If you would invest 949.00 in Voya Limited Maturity on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Voya Limited Maturity or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Limited Maturity vs. Voya Vacs Index
Performance |
| Timeline |
| Voya Limited Maturity |
| Voya Vacs Index |
Voya Limited and Voya Vacs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Limited and Voya Vacs
The main advantage of trading using opposite Voya Limited and Voya Vacs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Limited position performs unexpectedly, Voya Vacs 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 Vacs will offset losses from the drop in Voya Vacs' long position.| Voya Limited vs. Pender Real Estate | Voya Limited vs. Goldman Sachs Real | Voya Limited vs. Simt Real Estate | Voya Limited vs. Fidelity Real Estate |
| Voya Vacs vs. Voya Bond Index | Voya Vacs vs. Voya Bond Index | Voya Vacs vs. Voya Limited Maturity | Voya Vacs 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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