Correlation Between Voya Bond and Voya Us
Can any of the company-specific risk be diversified away by investing in both Voya Bond and Voya Us 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 Us 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 Stock Index, you can compare the effects of market volatilities on Voya Bond and Voya Us 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 Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and Voya Us.
Diversification Opportunities for Voya Bond and Voya Us
Pay attention - limited upside
The 3 months correlation between Voya and Voya is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Voya Stock Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Stock Index 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 Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Stock Index has no effect on the direction of Voya Bond i.e., Voya Bond and Voya Us go up and down completely randomly.
Pair Corralation between Voya Bond and Voya Us
Assuming the 90 days horizon Voya Bond is expected to generate 8.48 times less return on investment than Voya Us. But when comparing it to its historical volatility, Voya Bond Index is 1.95 times less risky than Voya Us. It trades about 0.08 of its potential returns per unit of risk. Voya Stock Index is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,949 in Voya Stock Index on September 1, 2024 and sell it today you would earn a total of 114.00 from holding Voya Stock Index or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Bond Index vs. Voya Stock Index
Performance |
| Timeline |
| Voya Bond Index |
| Voya Stock Index |
Voya Bond and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and Voya Us
The main advantage of trading using opposite Voya Bond and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.| Voya Bond vs. Voya Bond Index | Voya Bond vs. Voya Bond Index | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity |
| Voya Us vs. Live Oak Health | Voya Us vs. Deutsche Health And | Voya Us vs. Alphacentric Lifesci Healthcare | Voya Us vs. Health Care 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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