Correlation Between Voya Limited and Voya Global
Can any of the company-specific risk be diversified away by investing in both Voya Limited and Voya Global 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 Global 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 Global Multi Asset, you can compare the effects of market volatilities on Voya Limited and Voya Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Limited and Voya Global.
Diversification Opportunities for Voya Limited and Voya Global
0.62 | Correlation Coefficient |
Poor 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 Limited Maturity and Voya Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Multi 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Multi has no effect on the direction of Voya Limited i.e., Voya Limited and Voya Global go up and down completely randomly.
Pair Corralation between Voya Limited and Voya Global
Assuming the 90 days horizon Voya Limited is expected to generate 1.01 times less return on investment than Voya Global. But when comparing it to its historical volatility, Voya Limited Maturity is 3.52 times less risky than Voya Global. It trades about 0.21 of its potential returns per unit of risk. Voya Global Multi Asset is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,167 in Voya Global Multi Asset on November 28, 2024 and sell it today you would earn a total of 6.00 from holding Voya Global Multi Asset or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Limited Maturity vs. Voya Global Multi Asset
Performance |
| Timeline |
| Voya Limited Maturity |
| Voya Global Multi |
Voya Limited and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Limited and Voya Global
The main advantage of trading using opposite Voya Limited and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Limited position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Voya Limited vs. Rational Defensive Growth | Voya Limited vs. Tfa Alphagen Growth | Voya Limited vs. L Abbett Growth | Voya Limited vs. The Hartford Growth |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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