Correlation Between Voya Midcap and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Voya Midcap and Voya Multi-manager 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 Multi-manager 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 Multi Manager Mid, you can compare the effects of market volatilities on Voya Midcap and Voya Multi-manager 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 Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Midcap and Voya Multi-manager.
Diversification Opportunities for Voya Midcap and Voya Multi-manager
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 Midcap Opportunities and Voya Multi Manager Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Voya Midcap i.e., Voya Midcap and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Voya Midcap and Voya Multi-manager
Assuming the 90 days horizon Voya Midcap Opportunities is expected to generate 1.22 times more return on investment than Voya Multi-manager. However, Voya Midcap is 1.22 times more volatile than Voya Multi Manager Mid. It trades about 0.07 of its potential returns per unit of risk. Voya Multi Manager Mid is currently generating about -0.04 per unit of risk. If you would invest 2,359 in Voya Midcap Opportunities on November 2, 2024 and sell it today you would earn a total of 257.00 from holding Voya Midcap Opportunities or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.04% |
| Values | Daily Returns |
Voya Midcap Opportunities vs. Voya Multi Manager Mid
Performance |
| Timeline |
| Voya Midcap Opportunities |
| Voya Multi Manager |
Voya Midcap and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Midcap and Voya Multi-manager
The main advantage of trading using opposite Voya Midcap and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Midcap position performs unexpectedly, Voya Multi-manager 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 Multi-manager will offset losses from the drop in Voya Multi-manager's long position.| Voya Midcap vs. Cohen Steers Mlp | Voya Midcap vs. Invesco Energy Fund | Voya Midcap vs. Hennessy Gas Utility | Voya Midcap vs. Tortoise Energy Independence |
| Voya Multi-manager vs. Amg Managers Centersquare | Voya Multi-manager vs. Deutsche Real Estate | Voya Multi-manager vs. Neuberger Berman Real | Voya Multi-manager vs. Vy Clarion Real |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |