Correlation Between Voya Limited and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Voya Limited and Voya Multi-manager 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 Multi-manager 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 Multi Manager International, you can compare the effects of market volatilities on Voya Limited and Voya Multi-manager 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 Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Limited and Voya Multi-manager.
Diversification Opportunities for Voya Limited and Voya Multi-manager
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Voya and Voya is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Voya Limited Maturity and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Voya Limited i.e., Voya Limited and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Voya Limited and Voya Multi-manager
Assuming the 90 days horizon Voya Limited is expected to generate 2.62 times less return on investment than Voya Multi-manager. But when comparing it to its historical volatility, Voya Limited Maturity is 5.38 times less risky than Voya Multi-manager. It trades about 0.11 of its potential returns per unit of risk. Voya Multi Manager International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,933 in Voya Multi Manager International on August 30, 2024 and sell it today you would earn a total of 1,128 from holding Voya Multi Manager International or generate 22.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Voya Limited Maturity vs. Voya Multi Manager Internation
Performance |
| Timeline |
| Voya Limited Maturity |
| Voya Multi Manager |
Voya Limited and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Limited and Voya Multi-manager
The main advantage of trading using opposite Voya Limited and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Limited position performs unexpectedly, Voya Multi-manager 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 Multi-manager will offset losses from the drop in Voya Multi-manager's long position.| Voya Limited vs. Voya Bond Index | Voya Limited vs. Voya Bond Index | Voya Limited vs. Voya Limited Maturity | Voya Limited vs. Voya Bond Index |
| Voya Multi-manager vs. Blackrock Financial Institutions | Voya Multi-manager vs. Royce Global Financial | Voya Multi-manager vs. Mesirow Financial Small | Voya Multi-manager vs. First Trust Specialty |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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