Correlation Between Voya International and Voya Global
Can any of the company-specific risk be diversified away by investing in both Voya International and Voya Global 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 Global 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 Global Equity, you can compare the effects of market volatilities on Voya International and Voya Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya International and Voya Global.
Diversification Opportunities for Voya International and Voya Global
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Voya is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Voya International Index and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Voya International i.e., Voya International and Voya Global go up and down completely randomly.
Pair Corralation between Voya International and Voya Global
Assuming the 90 days horizon Voya International is expected to generate 1.14 times less return on investment than Voya Global. In addition to that, Voya International is 1.39 times more volatile than Voya Global Equity. It trades about 0.04 of its total potential returns per unit of risk. Voya Global Equity is currently generating about 0.07 per unit of volatility. If you would invest 3,836 in Voya Global Equity on November 1, 2024 and sell it today you would earn a total of 833.00 from holding Voya Global Equity or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya International Index vs. Voya Global Equity
Performance |
| Timeline |
| Voya International Index |
| Voya Global Equity |
Voya International and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya International and Voya Global
The main advantage of trading using opposite Voya International and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya International position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Voya International vs. Inverse Government Long | Voya International vs. Ab Municipal Bond | Voya International vs. Intermediate Term Tax Free Bond | Voya International vs. Lord Abbett Intermediate |
| Voya Global vs. Locorr Market Trend | Voya Global vs. Artisan Developing World | Voya Global vs. Alphacentric Hedged Market | Voya Global vs. Aqr Sustainable Long Short |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |