Correlation Between Voya Global and Voya Target
Can any of the company-specific risk be diversified away by investing in both Voya Global and Voya Target 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 Target 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 Target In Retirement, you can compare the effects of market volatilities on Voya Global and Voya Target 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 Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Voya Target.
Diversification Opportunities for Voya Global and Voya Target
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Bond and Voya Target In Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target In 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 Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target In has no effect on the direction of Voya Global i.e., Voya Global and Voya Target go up and down completely randomly.
Pair Corralation between Voya Global and Voya Target
Assuming the 90 days horizon Voya Global Bond is expected to under-perform the Voya Target. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Global Bond is 1.06 times less risky than Voya Target. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Voya Target In Retirement is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,055 in Voya Target In Retirement on October 21, 2024 and sell it today you would earn a total of 4.00 from holding Voya Target In Retirement or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Global Bond vs. Voya Target In Retirement
Performance |
| Timeline |
| Voya Global Bond |
| Voya Target In |
Voya Global and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Voya Target
The main advantage of trading using opposite Voya Global and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Voya Target 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 Target will offset losses from the drop in Voya Target's long position.| Voya Global vs. Saat Market Growth | Voya Global vs. Sp Midcap Index | Voya Global vs. Barings Emerging Markets | Voya Global vs. Locorr Market Trend |
| Voya Target vs. Georgia Tax Free Bond | Voya Target vs. Ab Bond Inflation | Voya Target vs. Leader Short Term Bond | Voya Target vs. Morningstar Defensive 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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