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 International, 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
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Voya is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Voya Midcap Opportunities and Voya Multi Manager Internation 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 1.85 times more return on investment than Voya Multi-manager. However, Voya Midcap is 1.85 times more volatile than Voya Multi Manager International. It trades about 0.4 of its potential returns per unit of risk. Voya Multi Manager International is currently generating about -0.13 per unit of risk. If you would invest 2,687 in Voya Midcap Opportunities on August 27, 2024 and sell it today you would earn a total of 304.00 from holding Voya Midcap Opportunities or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Midcap Opportunities vs. Voya Multi Manager Internation
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. Voya Bond Index | Voya Midcap vs. Voya Bond Index | Voya Midcap vs. Voya Limited Maturity | Voya Midcap vs. Voya Limited Maturity |
| Voya Multi-manager vs. Voya Bond Index | Voya Multi-manager vs. Voya Bond Index | Voya Multi-manager vs. Voya Limited Maturity | Voya Multi-manager vs. Voya Limited Maturity |
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
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets |