Correlation Between Voya Bond and Vy Goldman
Can any of the company-specific risk be diversified away by investing in both Voya Bond and Vy Goldman 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 Vy Goldman 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 Vy Goldman Sachs, you can compare the effects of market volatilities on Voya Bond and Vy Goldman 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 Vy Goldman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and Vy Goldman.
Diversification Opportunities for Voya Bond and Vy Goldman
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Voya and VGSBX is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Vy Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Goldman Sachs 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 Vy Goldman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Goldman Sachs has no effect on the direction of Voya Bond i.e., Voya Bond and Vy Goldman go up and down completely randomly.
Pair Corralation between Voya Bond and Vy Goldman
Assuming the 90 days horizon Voya Bond Index is expected to under-perform the Vy Goldman. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Bond Index is 1.38 times less risky than Vy Goldman. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Vy Goldman Sachs is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 932.00 in Vy Goldman Sachs on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Vy Goldman Sachs or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Bond Index vs. Vy Goldman Sachs
Performance |
| Timeline |
| Voya Bond Index |
| Vy Goldman Sachs |
Voya Bond and Vy Goldman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and Vy Goldman
The main advantage of trading using opposite Voya Bond and Vy Goldman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, Vy Goldman 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 Vy Goldman will offset losses from the drop in Vy Goldman's long position.| Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Emerging Markets |
| Vy Goldman vs. Volumetric Fund Volumetric | Vy Goldman vs. Multimedia Portfolio Multimedia | Vy Goldman vs. Rational Special Situations |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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