Correlation Between Voya Midcap and Voya Large-cap
Can any of the company-specific risk be diversified away by investing in both Voya Midcap and Voya Large-cap 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 Large-cap 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 Large Cap Growth, you can compare the effects of market volatilities on Voya Midcap and Voya Large-cap 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 Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Midcap and Voya Large-cap.
Diversification Opportunities for Voya Midcap and Voya Large-cap
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 Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Large Cap 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 Large-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Large Cap has no effect on the direction of Voya Midcap i.e., Voya Midcap and Voya Large-cap go up and down completely randomly.
Pair Corralation between Voya Midcap and Voya Large-cap
Assuming the 90 days horizon Voya Midcap Opportunities is expected to generate 1.11 times more return on investment than Voya Large-cap. However, Voya Midcap is 1.11 times more volatile than Voya Large Cap Growth. It trades about 0.41 of its potential returns per unit of risk. Voya Large Cap Growth is currently generating about 0.18 per unit of risk. If you would invest 2,659 in Voya Midcap Opportunities on August 25, 2024 and sell it today you would earn a total of 332.00 from holding Voya Midcap Opportunities or generate 12.49% 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 Large Cap Growth
Performance |
| Timeline |
| Voya Midcap Opportunities |
| Voya Large Cap |
Voya Midcap and Voya Large-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Midcap and Voya Large-cap
The main advantage of trading using opposite Voya Midcap and Voya Large-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Midcap position performs unexpectedly, Voya Large-cap 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 Large-cap will offset losses from the drop in Voya Large-cap'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 Large-cap vs. Voya Bond Index | Voya Large-cap vs. Voya Bond Index | Voya Large-cap vs. Voya Limited Maturity | Voya Large-cap 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |