Correlation Between Voya Multi-manager and Vy(r) Columbia
Can any of the company-specific risk be diversified away by investing in both Voya Multi-manager and Vy(r) Columbia 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 Multi-manager and Vy(r) Columbia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Multi Manager Mid and Vy Umbia Small, you can compare the effects of market volatilities on Voya Multi-manager and Vy(r) Columbia 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 Multi-manager with a short position of Vy(r) Columbia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi-manager and Vy(r) Columbia.
Diversification Opportunities for Voya Multi-manager and Vy(r) Columbia
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Vy(r) is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Voya Multi Manager Mid and Vy Umbia Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Umbia Small and Voya Multi-manager 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 Multi Manager Mid are associated (or correlated) with Vy(r) Columbia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Umbia Small has no effect on the direction of Voya Multi-manager i.e., Voya Multi-manager and Vy(r) Columbia go up and down completely randomly.
Pair Corralation between Voya Multi-manager and Vy(r) Columbia
Assuming the 90 days horizon Voya Multi Manager Mid is expected to generate 0.64 times more return on investment than Vy(r) Columbia. However, Voya Multi Manager Mid is 1.56 times less risky than Vy(r) Columbia. It trades about 0.06 of its potential returns per unit of risk. Vy Umbia Small is currently generating about 0.03 per unit of risk. If you would invest 890.00 in Voya Multi Manager Mid on September 4, 2024 and sell it today you would earn a total of 236.00 from holding Voya Multi Manager Mid or generate 26.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Voya Multi Manager Mid vs. Vy Umbia Small
Performance |
| Timeline |
| Voya Multi Manager |
| Vy Umbia Small |
Voya Multi-manager and Vy(r) Columbia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Multi-manager and Vy(r) Columbia
The main advantage of trading using opposite Voya Multi-manager and Vy(r) Columbia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi-manager position performs unexpectedly, Vy(r) Columbia 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(r) Columbia will offset losses from the drop in Vy(r) Columbia's long position.| Voya Multi-manager vs. Vanguard Institutional Short Term | Voya Multi-manager vs. Locorr Longshort Modities | Voya Multi-manager vs. Touchstone Ultra Short | Voya Multi-manager vs. Rbc Short Duration |
| Vy(r) Columbia vs. Voya Bond Index | Vy(r) Columbia vs. Voya Bond Index | Vy(r) Columbia vs. Voya Limited Maturity | Vy(r) Columbia vs. Voya Limited Maturity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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