Correlation Between Voya Midcap and Icon Information
Can any of the company-specific risk be diversified away by investing in both Voya Midcap and Icon Information 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 Icon Information 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 Icon Information Technology, you can compare the effects of market volatilities on Voya Midcap and Icon Information 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 Icon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Midcap and Icon Information.
Diversification Opportunities for Voya Midcap and Icon Information
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Icon is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Voya Midcap Opportunities and Icon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Information Tec 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 Icon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Information Tec has no effect on the direction of Voya Midcap i.e., Voya Midcap and Icon Information go up and down completely randomly.
Pair Corralation between Voya Midcap and Icon Information
Assuming the 90 days horizon Voya Midcap Opportunities is expected to generate 1.34 times more return on investment than Icon Information. However, Voya Midcap is 1.34 times more volatile than Icon Information Technology. It trades about 0.06 of its potential returns per unit of risk. Icon Information Technology is currently generating about 0.03 per unit of risk. If you would invest 2,515 in Voya Midcap Opportunities on October 26, 2024 and sell it today you would earn a total of 250.00 from holding Voya Midcap Opportunities or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Midcap Opportunities vs. Icon Information Technology
Performance |
| Timeline |
| Voya Midcap Opportunities |
| Icon Information Tec |
Voya Midcap and Icon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Midcap and Icon Information
The main advantage of trading using opposite Voya Midcap and Icon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Midcap position performs unexpectedly, Icon Information 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 Icon Information will offset losses from the drop in Icon Information's long position.| Voya Midcap vs. Blackrock Science Technology | Voya Midcap vs. Icon Information Technology | Voya Midcap vs. Technology Ultrasector Profund | Voya Midcap vs. Columbia Global Technology |
| Icon Information vs. Rbc Global Opportunities | Icon Information vs. Aqr Global Macro | Icon Information vs. Templeton Global Balanced | Icon Information vs. Legg Mason Global |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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