Correlation Between Voya Limited and Voya Vacs
Can any of the company-specific risk be diversified away by investing in both Voya Limited and Voya Vacs 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 Vacs 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 Vacs Series, you can compare the effects of market volatilities on Voya Limited and Voya Vacs 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 Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Limited and Voya Vacs.
Diversification Opportunities for Voya Limited and Voya Vacs
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Voya is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Voya Limited Maturity and Voya Vacs Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Series 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 Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Series has no effect on the direction of Voya Limited i.e., Voya Limited and Voya Vacs go up and down completely randomly.
Pair Corralation between Voya Limited and Voya Vacs
Assuming the 90 days horizon Voya Limited is expected to generate 1.67 times less return on investment than Voya Vacs. But when comparing it to its historical volatility, Voya Limited Maturity is 5.82 times less risky than Voya Vacs. It trades about 0.22 of its potential returns per unit of risk. Voya Vacs Series is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,054 in Voya Vacs Series on October 23, 2024 and sell it today you would earn a total of 9.00 from holding Voya Vacs Series or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Limited Maturity vs. Voya Vacs Series
Performance |
| Timeline |
| Voya Limited Maturity |
| Voya Vacs Series |
Voya Limited and Voya Vacs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Limited and Voya Vacs
The main advantage of trading using opposite Voya Limited and Voya Vacs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Limited position performs unexpectedly, Voya Vacs 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 Vacs will offset losses from the drop in Voya Vacs' long position.| Voya Limited vs. Invesco Gold Special | Voya Limited vs. Gamco Global Gold | Voya Limited vs. First Eagle Gold | Voya Limited vs. International Investors Gold |
| Voya Vacs vs. Wcm Focused Emerging | Voya Vacs vs. Black Oak Emerging | Voya Vacs vs. Eagle Mlp Strategy | Voya Vacs vs. Virtus Multi Strategy Target |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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