Correlation Between Voya Multi-manager and Voya Midcap
Can any of the company-specific risk be diversified away by investing in both Voya Multi-manager and Voya Midcap 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 Voya Midcap 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 Voya Midcap Opportunities, you can compare the effects of market volatilities on Voya Multi-manager and Voya Midcap 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 Voya Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi-manager and Voya Midcap.
Diversification Opportunities for Voya Multi-manager and Voya Midcap
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Voya is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Voya Multi Manager Mid and Voya Midcap Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Midcap Opportunities 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 Voya Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Midcap Opportunities has no effect on the direction of Voya Multi-manager i.e., Voya Multi-manager and Voya Midcap go up and down completely randomly.
Pair Corralation between Voya Multi-manager and Voya Midcap
Assuming the 90 days horizon Voya Multi Manager Mid is expected to under-perform the Voya Midcap. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Multi Manager Mid is 1.18 times less risky than Voya Midcap. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Voya Midcap Opportunities is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,687 in Voya Midcap Opportunities on October 26, 2024 and sell it today you would earn a total of 78.00 from holding Voya Midcap Opportunities or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Multi Manager Mid vs. Voya Midcap Opportunities
Performance |
| Timeline |
| Voya Multi Manager |
| Voya Midcap Opportunities |
Voya Multi-manager and Voya Midcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Multi-manager and Voya Midcap
The main advantage of trading using opposite Voya Multi-manager and Voya Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi-manager position performs unexpectedly, Voya Midcap 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 Midcap will offset losses from the drop in Voya Midcap's long position.| Voya Multi-manager vs. Voya Investors Trust | Voya Multi-manager vs. Voya Vacs Index | Voya Multi-manager vs. Voya Vacs Index | Voya Multi-manager vs. Vy T Rowe |
| Voya Midcap vs. Blackrock Science Technology | Voya Midcap vs. Icon Information Technology | Voya Midcap vs. Technology Ultrasector Profund | Voya Midcap vs. Columbia Global Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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