Correlation Between Voya Large and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Voya Large and Voya Retirement 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 Large and Voya Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Large Cap and Voya Retirement Growth, you can compare the effects of market volatilities on Voya Large and Voya Retirement 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 Large with a short position of Voya Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large and Voya Retirement.
Diversification Opportunities for Voya Large and Voya Retirement
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Voya is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap and Voya Retirement Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Growth and Voya Large 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 Large Cap are associated (or correlated) with Voya Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Growth has no effect on the direction of Voya Large i.e., Voya Large and Voya Retirement go up and down completely randomly.
Pair Corralation between Voya Large and Voya Retirement
Assuming the 90 days horizon Voya Large is expected to generate 1.19 times less return on investment than Voya Retirement. In addition to that, Voya Large is 1.24 times more volatile than Voya Retirement Growth. It trades about 0.07 of its total potential returns per unit of risk. Voya Retirement Growth is currently generating about 0.11 per unit of volatility. If you would invest 889.00 in Voya Retirement Growth on September 13, 2024 and sell it today you would earn a total of 343.00 from holding Voya Retirement Growth or generate 38.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Voya Large Cap vs. Voya Retirement Growth
Performance |
| Timeline |
| Voya Large Cap |
| Voya Retirement Growth |
Voya Large and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large and Voya Retirement
The main advantage of trading using opposite Voya Large and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large position performs unexpectedly, Voya Retirement 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 Retirement will offset losses from the drop in Voya Retirement's long position.| Voya Large vs. Needham Aggressive Growth | Voya Large vs. Ab Global Risk | Voya Large vs. Artisan High Income | Voya Large vs. Franklin High Income |
| Voya Retirement vs. T Rowe Price | Voya Retirement vs. Doubleline Yield Opportunities | Voya Retirement vs. Touchstone Premium Yield | Voya Retirement vs. Multisector Bond Sma |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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