Correlation Between Voya Midcap and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Voya Midcap 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 Midcap 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 Midcap Opportunities and Voya Retirement Growth, you can compare the effects of market volatilities on Voya Midcap 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 Midcap with a short position of Voya Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Midcap and Voya Retirement.
Diversification Opportunities for Voya Midcap 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 Midcap Opportunities and Voya Retirement Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Growth and Voya Midcap 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 Midcap Opportunities 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 Growth has no effect on the direction of Voya Midcap i.e., Voya Midcap and Voya Retirement go up and down completely randomly.
Pair Corralation between Voya Midcap and Voya Retirement
Assuming the 90 days horizon Voya Midcap Opportunities is expected to generate 1.65 times more return on investment than Voya Retirement. However, Voya Midcap is 1.65 times more volatile than Voya Retirement Growth. It trades about 0.09 of its potential returns per unit of risk. Voya Retirement Growth is currently generating about 0.12 per unit of risk. If you would invest 294.00 in Voya Midcap Opportunities on September 12, 2024 and sell it today you would earn a total of 96.00 from holding Voya Midcap Opportunities or generate 32.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.7% |
| Values | Daily Returns |
Voya Midcap Opportunities vs. Voya Retirement Growth
Performance |
| Timeline |
| Voya Midcap Opportunities |
| Voya Retirement Growth |
Voya Midcap and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Midcap and Voya Retirement
The main advantage of trading using opposite Voya Midcap and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Midcap 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 Midcap vs. T Rowe Price | Voya Midcap vs. T Rowe Price | Voya Midcap vs. SCOR PK | Voya Midcap vs. Morningstar Unconstrained Allocation |
| Voya Retirement vs. Qs Large Cap | Voya Retirement vs. Dana Large Cap | Voya Retirement vs. Pace Large Value | Voya Retirement vs. Americafirst Large Cap |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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