Correlation Between Voya High and Summit Global
Can any of the company-specific risk be diversified away by investing in both Voya High and Summit 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 Summit 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 Summit Global Investments, you can compare the effects of market volatilities on Voya High and Summit 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 Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Summit Global.
Diversification Opportunities for Voya High and Summit Global
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Voya and Summit is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments 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 Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of Voya High i.e., Voya High and Summit Global go up and down completely randomly.
Pair Corralation between Voya High and Summit Global
If you would invest 697.00 in Voya High Yield on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Voya High Yield or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Voya High Yield vs. Summit Global Investments
Performance |
| Timeline |
| Voya High Yield |
| Summit Global Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Voya High and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Summit Global
The main advantage of trading using opposite Voya High and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Summit 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 Summit Global will offset losses from the drop in Summit Global's long position.| Voya High vs. Bbh Intermediate Municipal | Voya High vs. Gamco Global Telecommunications | Voya High vs. Franklin High Yield | Voya High vs. T Rowe Price |
| Summit Global vs. Ambrus Core Bond | Summit Global vs. T Rowe Price | Summit Global vs. Doubleline Yield Opportunities | Summit Global vs. Ishares Municipal Bond |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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