Correlation Between Voya Global and Voya Gnma
Can any of the company-specific risk be diversified away by investing in both Voya Global and Voya Gnma 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 Voya Gnma 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 Voya Gnma Income, you can compare the effects of market volatilities on Voya Global and Voya Gnma 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 Voya Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Voya Gnma.
Diversification Opportunities for Voya Global and Voya Gnma
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Voya is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Bond and Voya Gnma Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Gnma Income 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 Voya Gnma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Gnma Income has no effect on the direction of Voya Global i.e., Voya Global and Voya Gnma go up and down completely randomly.
Pair Corralation between Voya Global and Voya Gnma
Assuming the 90 days horizon Voya Global Bond is expected to under-perform the Voya Gnma. In addition to that, Voya Global is 1.22 times more volatile than Voya Gnma Income. It trades about -0.11 of its total potential returns per unit of risk. Voya Gnma Income is currently generating about -0.04 per unit of volatility. If you would invest 747.00 in Voya Gnma Income on August 28, 2024 and sell it today you would lose (6.00) from holding Voya Gnma Income or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Voya Global Bond vs. Voya Gnma Income
Performance |
| Timeline |
| Voya Global Bond |
| Voya Gnma Income |
Voya Global and Voya Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Voya Gnma
The main advantage of trading using opposite Voya Global and Voya Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Voya Gnma 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 Gnma will offset losses from the drop in Voya Gnma's long position.| Voya Global vs. Voya Bond Index | Voya Global vs. Voya Bond Index | Voya Global vs. Voya Limited Maturity | Voya Global vs. Voya Limited Maturity |
| Voya Gnma vs. Fabxx | Voya Gnma vs. Leggmason Partners Institutional | Voya Gnma vs. Falcon Focus Scv | Voya Gnma vs. T Rowe Price |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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