Correlation Between Voya International and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Voya International and Voya Retirement 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 International and Voya Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya International Index and Voya Retirement Growth, you can compare the effects of market volatilities on Voya International and Voya Retirement 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 International with a short position of Voya Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya International and Voya Retirement.
Diversification Opportunities for Voya International and Voya Retirement
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Voya is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Voya International Index and Voya Retirement Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Growth and Voya International 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 International Index are associated (or correlated) with Voya Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Growth has no effect on the direction of Voya International i.e., Voya International and Voya Retirement go up and down completely randomly.
Pair Corralation between Voya International and Voya Retirement
Assuming the 90 days horizon Voya International is expected to generate 1.47 times less return on investment than Voya Retirement. In addition to that, Voya International is 1.4 times more volatile than Voya Retirement Growth. It trades about 0.06 of its total potential returns per unit of risk. Voya Retirement Growth is currently generating about 0.12 per unit of volatility. If you would invest 973.00 in Voya Retirement Growth on September 12, 2024 and sell it today you would earn a total of 264.00 from holding Voya Retirement Growth or generate 27.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Voya International Index vs. Voya Retirement Growth
Performance |
| Timeline |
| Voya International Index |
| Voya Retirement Growth |
Voya International and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya International and Voya Retirement
The main advantage of trading using opposite Voya International and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya International position performs unexpectedly, Voya Retirement 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 Retirement will offset losses from the drop in Voya Retirement's long position.| Voya International vs. T Rowe Price | Voya International vs. Needham Aggressive Growth | Voya International vs. Western Asset High | Voya International vs. Lgm Risk Managed |
| Voya Retirement vs. Qs Large Cap | Voya Retirement vs. Dana Large Cap | Voya Retirement vs. Pace Large Value | Voya Retirement vs. Americafirst Large Cap |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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