Correlation Between Voya Midcap and Voya Index
Can any of the company-specific risk be diversified away by investing in both Voya Midcap and Voya Index 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 Index 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 Index Plus, you can compare the effects of market volatilities on Voya Midcap and Voya Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Midcap and Voya Index.
Diversification Opportunities for Voya Midcap and Voya Index
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and VOYA is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Voya Midcap Opportunities and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of Voya Midcap i.e., Voya Midcap and Voya Index go up and down completely randomly.
Pair Corralation between Voya Midcap and Voya Index
Assuming the 90 days horizon Voya Midcap Opportunities is expected to generate 1.48 times more return on investment than Voya Index. However, Voya Midcap is 1.48 times more volatile than Voya Index Plus. It trades about 0.38 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.2 per unit of risk. If you would invest 2,556 in Voya Midcap Opportunities on August 31, 2024 and sell it today you would earn a total of 282.00 from holding Voya Midcap Opportunities or generate 11.03% 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. Voya Index Plus
Performance |
| Timeline |
| Voya Midcap Opportunities |
| Voya Index Plus |
Voya Midcap and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Midcap and Voya Index
The main advantage of trading using opposite Voya Midcap and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Midcap position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| Voya Midcap vs. Pro Blend Moderate Term | Voya Midcap vs. Moderately Aggressive Balanced | Voya Midcap vs. Target Retirement 2040 | Voya Midcap vs. Multimanager Lifestyle Moderate |
| Voya Index vs. Blackrock Health Sciences | Voya Index vs. Alger Health Sciences | Voya Index vs. Alphacentric Lifesci Healthcare | Voya Index vs. Health Care Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |