Correlation Between Voya High and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Voya High and Voya Solution 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 High and Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Voya Solution Servative, you can compare the effects of market volatilities on Voya High and Voya Solution 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 High with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Voya Solution.
Diversification Opportunities for Voya High and Voya Solution
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Voya Solution Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Servative and Voya High 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 High Yield are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Servative has no effect on the direction of Voya High i.e., Voya High and Voya Solution go up and down completely randomly.
Pair Corralation between Voya High and Voya Solution
Assuming the 90 days horizon Voya High Yield is expected to generate 0.77 times more return on investment than Voya Solution. However, Voya High Yield is 1.3 times less risky than Voya Solution. It trades about 0.12 of its potential returns per unit of risk. Voya Solution Servative is currently generating about 0.08 per unit of risk. If you would invest 693.00 in Voya High Yield on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Voya High Yield or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Voya High Yield vs. Voya Solution Servative
Performance |
| Timeline |
| Voya High Yield |
| Voya Solution Servative |
Voya High and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Voya Solution
The main advantage of trading using opposite Voya High and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.| Voya High vs. Rbc Impact Bond | Voya High vs. T Rowe Price | Voya High vs. Ultra Short Fixed Income | Voya High vs. Ms Global Fixed |
| Voya Solution vs. Neuberger Berman Income | Voya Solution vs. Buffalo High Yield | Voya Solution vs. Dunham High Yield | Voya Solution vs. City National Rochdale |
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 Positions Ratings module to 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.
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