Correlation Between Voya Global and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Voya Global 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 Global 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 Global Bond and Voya Solution Balanced, you can compare the effects of market volatilities on Voya Global 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 Global with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Voya Solution.
Diversification Opportunities for Voya Global and Voya Solution
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VOYA and Voya is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Bond and Voya Solution Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Balanced and Voya Global 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 Global Bond 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 Balanced has no effect on the direction of Voya Global i.e., Voya Global and Voya Solution go up and down completely randomly.
Pair Corralation between Voya Global and Voya Solution
Assuming the 90 days horizon Voya Global is expected to generate 97.82 times less return on investment than Voya Solution. But when comparing it to its historical volatility, Voya Global Bond is 1.07 times less risky than Voya Solution. It trades about 0.0 of its potential returns per unit of risk. Voya Solution Balanced is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 929.00 in Voya Solution Balanced on August 31, 2024 and sell it today you would earn a total of 22.00 from holding Voya Solution Balanced or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Global Bond vs. Voya Solution Balanced
Performance |
| Timeline |
| Voya Global Bond |
| Voya Solution Balanced |
Voya Global and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Voya Solution
The main advantage of trading using opposite Voya Global and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global 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 Global vs. Shelton Funds | Voya Global vs. Victory Incore Fund | Voya Global vs. Eic Value Fund | Voya Global vs. Small Cap Stock |
| Voya Solution vs. American Funds American | Voya Solution vs. American Funds American | Voya Solution vs. American Balanced | Voya Solution vs. American Balanced Fund |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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