Correlation Between Voya Multi and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Voya Multi and Voya Retirement 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 and Voya Retirement 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 Retirement Moderate, you can compare the effects of market volatilities on Voya Multi and Voya Retirement 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 with a short position of Voya Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi and Voya Retirement.
Diversification Opportunities for Voya Multi and Voya Retirement
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Voya is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Voya Multi Manager Mid and Voya Retirement Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Moderate and Voya Multi 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 Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Moderate has no effect on the direction of Voya Multi i.e., Voya Multi and Voya Retirement go up and down completely randomly.
Pair Corralation between Voya Multi and Voya Retirement
Assuming the 90 days horizon Voya Multi is expected to generate 2.62 times less return on investment than Voya Retirement. In addition to that, Voya Multi is 1.78 times more volatile than Voya Retirement Moderate. It trades about 0.02 of its total potential returns per unit of risk. Voya Retirement Moderate is currently generating about 0.09 per unit of volatility. If you would invest 1,078 in Voya Retirement Moderate on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Voya Retirement Moderate or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.67% |
| Values | Daily Returns |
Voya Multi Manager Mid vs. Voya Retirement Moderate
Performance |
| Timeline |
| Voya Multi Manager |
| Voya Retirement Moderate |
Voya Multi and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Multi and Voya Retirement
The main advantage of trading using opposite Voya Multi and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi position performs unexpectedly, Voya Retirement 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 Retirement will offset losses from the drop in Voya Retirement's long position.| Voya Multi vs. Elfun Diversified Fund | Voya Multi vs. Guggenheim Diversified Income | Voya Multi vs. Calvert Conservative Allocation | Voya Multi vs. Global Diversified Income |
| Voya Retirement vs. Voya Bond Index | Voya Retirement vs. Voya Bond Index | Voya Retirement vs. Voya Limited Maturity | Voya Retirement 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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