Correlation Between Voya Global and Voya Index
Can any of the company-specific risk be diversified away by investing in both Voya Global and Voya Index 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 Index 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 Index Plus, you can compare the effects of market volatilities on Voya Global and Voya Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Voya Index.
Diversification Opportunities for Voya Global and Voya Index
-0.75 | Correlation Coefficient |
Pay attention - limited upside
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 Global Bond and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of Voya Global i.e., Voya Global and Voya Index go up and down completely randomly.
Pair Corralation between Voya Global and Voya Index
Assuming the 90 days horizon Voya Global Bond is expected to under-perform the Voya Index. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Global Bond is 2.62 times less risky than Voya Index. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Voya Index Plus is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,073 in Voya Index Plus on August 28, 2024 and sell it today you would earn a total of 172.00 from holding Voya Index Plus or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Global Bond vs. Voya Index Plus
Performance |
| Timeline |
| Voya Global Bond |
| Voya Index Plus |
Voya Global and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Voya Index
The main advantage of trading using opposite Voya Global and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index'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 Index vs. Ep Emerging Markets | Voya Index vs. Ashmore Emerging Markets | Voya Index vs. Western Assets Emerging | Voya Index vs. Investec Emerging Markets |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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