Correlation Between Voya International and Voya Us
Can any of the company-specific risk be diversified away by investing in both Voya International and Voya Us 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 Us 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 Stock Index, you can compare the effects of market volatilities on Voya International and Voya Us 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 Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya International and Voya Us.
Diversification Opportunities for Voya International and Voya Us
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Voya is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Voya International Index and Voya Stock Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Stock Index 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 Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Stock Index has no effect on the direction of Voya International i.e., Voya International and Voya Us go up and down completely randomly.
Pair Corralation between Voya International and Voya Us
Assuming the 90 days horizon Voya International Index is expected to under-perform the Voya Us. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya International Index is 1.04 times less risky than Voya Us. The mutual fund trades about -0.21 of its potential returns per unit of risk. The Voya Stock Index is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,941 in Voya Stock Index on August 29, 2024 and sell it today you would earn a total of 67.00 from holding Voya Stock Index or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya International Index vs. Voya Stock Index
Performance |
| Timeline |
| Voya International Index |
| Voya Stock Index |
Voya International and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya International and Voya Us
The main advantage of trading using opposite Voya International and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya International position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.| Voya International vs. Artisan Emerging Markets | Voya International vs. Barings Emerging Markets | Voya International vs. Shelton Emerging Markets | Voya International vs. Commodities Strategy Fund |
| Voya Us vs. Ab Value Fund | Voya Us vs. Eic Value Fund | Voya Us vs. Omni Small Cap Value | Voya Us vs. Versatile Bond Portfolio |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |