Correlation Between International Investors and Voya Index
Can any of the company-specific risk be diversified away by investing in both International Investors and Voya Index 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 International Investors and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Investors Gold and Voya Index Plus, you can compare the effects of market volatilities on International Investors and Voya Index 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 International Investors with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Investors and Voya Index.
Diversification Opportunities for International Investors and Voya Index
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between International and Voya is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding International Investors Gold and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus and International Investors 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 International Investors Gold are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of International Investors i.e., International Investors and Voya Index go up and down completely randomly.
Pair Corralation between International Investors and Voya Index
Assuming the 90 days horizon International Investors Gold is expected to under-perform the Voya Index. In addition to that, International Investors is 1.71 times more volatile than Voya Index Plus. It trades about -0.13 of its total potential returns per unit of risk. Voya Index Plus is currently generating about 0.35 per unit of volatility. If you would invest 2,055 in Voya Index Plus on September 3, 2024 and sell it today you would earn a total of 176.00 from holding Voya Index Plus or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Investors Gold vs. Voya Index Plus
Performance |
| Timeline |
| International Investors |
| Voya Index Plus |
International Investors and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Investors and Voya Index
The main advantage of trading using opposite International Investors and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Investors position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| International Investors vs. Dws Government Money | International Investors vs. John Hancock Money | International Investors vs. Lord Abbett Emerging | International Investors vs. Transamerica Funds |
| Voya Index vs. Fidelity Sai Convertible | Voya Index vs. Rationalpier 88 Convertible | Voya Index vs. Advent Claymore Convertible | Voya Index vs. Rationalpier 88 Convertible |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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