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 good 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 Index is expected to under-perform the Voya Global. In addition to that, Voya International is 1.54 times more volatile than Voya Global Equity. It trades about -0.02 of its total potential returns per unit of risk. Voya Global Equity is currently generating about 0.15 per unit of volatility. If you would invest 4,342 in Voya Global Equity on August 29, 2024 and sell it today you would earn a total of 510.00 from holding Voya Global Equity or generate 11.75% 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 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. Artisan Emerging Markets | Voya International vs. Barings Emerging Markets | Voya International vs. Shelton Emerging Markets | Voya International vs. Commodities Strategy Fund |
| Voya Global vs. Rbb Fund | Voya Global vs. Growth Fund Of | Voya Global vs. Ab Small Cap | Voya Global vs. Shelton Funds |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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