Correlation Between Voya Midcap and Voya Vacs
Can any of the company-specific risk be diversified away by investing in both Voya Midcap and Voya Vacs 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 Vacs 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 Vacs Index, you can compare the effects of market volatilities on Voya Midcap and Voya Vacs 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 Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Midcap and Voya Vacs.
Diversification Opportunities for Voya Midcap and Voya Vacs
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Voya is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Voya Midcap Opportunities and Voya Vacs Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Index 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 Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Index has no effect on the direction of Voya Midcap i.e., Voya Midcap and Voya Vacs go up and down completely randomly.
Pair Corralation between Voya Midcap and Voya Vacs
Assuming the 90 days horizon Voya Midcap Opportunities is expected to generate 1.64 times more return on investment than Voya Vacs. However, Voya Midcap is 1.64 times more volatile than Voya Vacs Index. It trades about 0.49 of its potential returns per unit of risk. Voya Vacs Index is currently generating about 0.36 per unit of risk. If you would invest 2,646 in Voya Midcap Opportunities on September 1, 2024 and sell it today you would earn a total of 357.00 from holding Voya Midcap Opportunities or generate 13.49% 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 Vacs Index
Performance |
| Timeline |
| Voya Midcap Opportunities |
| Voya Vacs Index |
Voya Midcap and Voya Vacs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Midcap and Voya Vacs
The main advantage of trading using opposite Voya Midcap and Voya Vacs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Midcap position performs unexpectedly, Voya Vacs 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 Vacs will offset losses from the drop in Voya Vacs' long position.| Voya Midcap vs. Multimedia Portfolio Multimedia | Voya Midcap vs. Artisan Select Equity | Voya Midcap vs. Us Vector Equity | Voya Midcap vs. The Gabelli Equity |
| Voya Vacs vs. Virtus Seix Government | Voya Vacs vs. Inverse Government Long | Voya Vacs vs. Dreyfus Government Cash | Voya Vacs vs. Aig Government Money |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |