Correlation Between Voya Bond and Voya Index
Can any of the company-specific risk be diversified away by investing in both Voya Bond and Voya Index 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 Index 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 Index Plus, you can compare the effects of market volatilities on Voya Bond and Voya Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and Voya Index.
Diversification Opportunities for Voya Bond and Voya Index
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Voya is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of Voya Bond i.e., Voya Bond and Voya Index go up and down completely randomly.
Pair Corralation between Voya Bond and Voya Index
Assuming the 90 days horizon Voya Bond Index is expected to under-perform the Voya Index. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Bond Index is 3.99 times less risky than Voya Index. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Voya Index Plus is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,282 in Voya Index Plus on September 12, 2024 and sell it today you would earn a total of 146.00 from holding Voya Index Plus or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Bond Index vs. Voya Index Plus
Performance |
| Timeline |
| Voya Bond Index |
| Voya Index Plus |
Voya Bond and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and Voya Index
The main advantage of trading using opposite Voya Bond and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| Voya Bond vs. SCOR PK | Voya Bond vs. Morningstar Unconstrained Allocation | Voya Bond vs. Via Renewables | Voya Bond vs. Bondbloxx ETF Trust |
| Voya Index vs. Goehring Rozencwajg Resources | Voya Index vs. Oil Gas Ultrasector | Voya Index vs. Fidelity Advisor Energy | Voya Index vs. World Energy Fund |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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