Correlation Between Voya Global and Vy(r) Baron
Can any of the company-specific risk be diversified away by investing in both Voya Global and Vy(r) Baron 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 Global and Vy(r) Baron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Bond and Vy Baron Growth, you can compare the effects of market volatilities on Voya Global and Vy(r) Baron 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 Global with a short position of Vy(r) Baron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Vy(r) Baron.
Diversification Opportunities for Voya Global and Vy(r) Baron
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VOYA and VY(R) is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Bond and Vy Baron Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Baron Growth and Voya Global 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 Global Bond are associated (or correlated) with Vy(r) Baron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Baron Growth has no effect on the direction of Voya Global i.e., Voya Global and Vy(r) Baron go up and down completely randomly.
Pair Corralation between Voya Global and Vy(r) Baron
Assuming the 90 days horizon Voya Global Bond is expected to generate 0.4 times more return on investment than Vy(r) Baron. However, Voya Global Bond is 2.51 times less risky than Vy(r) Baron. It trades about 0.03 of its potential returns per unit of risk. Vy Baron Growth is currently generating about 0.01 per unit of risk. If you would invest 755.00 in Voya Global Bond on December 4, 2024 and sell it today you would earn a total of 39.00 from holding Voya Global Bond or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Voya Global Bond vs. Vy Baron Growth
Performance |
| Timeline |
| Voya Global Bond |
| Vy Baron Growth |
Voya Global and Vy(r) Baron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Vy(r) Baron
The main advantage of trading using opposite Voya Global and Vy(r) Baron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Vy(r) Baron 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 Vy(r) Baron will offset losses from the drop in Vy(r) Baron's long position.| Voya Global vs. Baillie Gifford Health | Voya Global vs. Blackrock Health Sciences | Voya Global vs. Allianzgi Health Sciences | Voya Global vs. Health Care Ultrasector |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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