Correlation Between Voya High and Voya Global
Can any of the company-specific risk be diversified away by investing in both Voya High and Voya Global 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 Global 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 Global Perspectives, you can compare the effects of market volatilities on Voya High and Voya Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Voya Global.
Diversification Opportunities for Voya High and Voya Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Voya is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Voya Global Perspectives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Perspectives 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Perspectives has no effect on the direction of Voya High i.e., Voya High and Voya Global go up and down completely randomly.
Pair Corralation between Voya High and Voya Global
Assuming the 90 days horizon Voya High is expected to generate 3.5 times less return on investment than Voya Global. But when comparing it to its historical volatility, Voya High Yield is 3.31 times less risky than Voya Global. It trades about 0.14 of its potential returns per unit of risk. Voya Global Perspectives is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 890.00 in Voya Global Perspectives on August 24, 2024 and sell it today you would earn a total of 14.00 from holding Voya Global Perspectives or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Voya High Yield vs. Voya Global Perspectives
Performance |
| Timeline |
| Voya High Yield |
| Voya Global Perspectives |
Voya High and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Voya Global
The main advantage of trading using opposite Voya High and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Voya High vs. Invesco Technology Fund | Voya High vs. Pgim Jennison Technology | Voya High vs. Janus Global Technology | Voya High vs. Mfs Technology Fund |
| Voya Global vs. Nuveen Winslow Large Cap | Voya Global vs. William Blair Large | Voya Global vs. Aqr Large Cap | Voya Global vs. Gmo Equity Allocation |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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