Correlation Between Voya Midcap and Ladenburg Growth
Can any of the company-specific risk be diversified away by investing in both Voya Midcap and Ladenburg Growth 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 Ladenburg Growth 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 Ladenburg Growth, you can compare the effects of market volatilities on Voya Midcap and Ladenburg Growth 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 Ladenburg Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Midcap and Ladenburg Growth.
Diversification Opportunities for Voya Midcap and Ladenburg Growth
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Ladenburg is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Voya Midcap Opportunities and Ladenburg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg 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 Ladenburg Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Growth has no effect on the direction of Voya Midcap i.e., Voya Midcap and Ladenburg Growth go up and down completely randomly.
Pair Corralation between Voya Midcap and Ladenburg Growth
Assuming the 90 days horizon Voya Midcap Opportunities is expected to generate 1.59 times more return on investment than Ladenburg Growth. However, Voya Midcap is 1.59 times more volatile than Ladenburg Growth. It trades about 0.13 of its potential returns per unit of risk. Ladenburg Growth is currently generating about 0.15 per unit of risk. If you would invest 334.00 in Voya Midcap Opportunities on September 1, 2024 and sell it today you would earn a total of 60.00 from holding Voya Midcap Opportunities or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Midcap Opportunities vs. Ladenburg Growth
Performance |
| Timeline |
| Voya Midcap Opportunities |
| Ladenburg Growth |
Voya Midcap and Ladenburg Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Midcap and Ladenburg Growth
The main advantage of trading using opposite Voya Midcap and Ladenburg Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Midcap position performs unexpectedly, Ladenburg Growth 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 Ladenburg Growth will offset losses from the drop in Ladenburg Growth's long position.| Voya Midcap vs. Voya Bond Index | Voya Midcap vs. Voya Bond Index | Voya Midcap vs. Voya Limited Maturity | Voya Midcap vs. Voya Limited Maturity |
| Ladenburg Growth vs. Ladenburg Growth | Ladenburg Growth vs. Ladenburg Income Fundclass | Ladenburg Growth vs. Ladenburg Income Fundclass | Ladenburg Growth vs. Ladenburg Income Fundclass |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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