Correlation Between Voya International and Voya Investment
Can any of the company-specific risk be diversified away by investing in both Voya International and Voya Investment 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 Investment 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 Investment Grade, you can compare the effects of market volatilities on Voya International and Voya Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya International and Voya Investment.
Diversification Opportunities for Voya International and Voya Investment
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Voya International Index and Voya Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Investment Grade 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Investment Grade has no effect on the direction of Voya International i.e., Voya International and Voya Investment go up and down completely randomly.
Pair Corralation between Voya International and Voya Investment
Assuming the 90 days horizon Voya International Index is expected to generate 1.86 times more return on investment than Voya Investment. However, Voya International is 1.86 times more volatile than Voya Investment Grade. It trades about 0.13 of its potential returns per unit of risk. Voya Investment Grade is currently generating about 0.11 per unit of risk. If you would invest 1,104 in Voya International Index on October 23, 2024 and sell it today you would earn a total of 16.00 from holding Voya International Index or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya International Index vs. Voya Investment Grade
Performance |
| Timeline |
| Voya International Index |
| Voya Investment Grade |
Voya International and Voya Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya International and Voya Investment
The main advantage of trading using opposite Voya International and Voya Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya International position performs unexpectedly, Voya Investment 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 Investment will offset losses from the drop in Voya Investment's long position.| Voya International vs. Voya Bond Index | Voya International vs. Voya Bond Index | Voya International vs. Voya Limited Maturity | Voya International vs. Voya Limited Maturity |
| Voya Investment vs. Touchstone Large Cap | Voya Investment vs. Tiaa Cref Large Cap Value | Voya Investment vs. Americafirst Large Cap | Voya Investment vs. Qs 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |