Correlation Between Voya Large and Voya Us
Can any of the company-specific risk be diversified away by investing in both Voya Large and Voya Us 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 Us 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 Stock Index, you can compare the effects of market volatilities on Voya Large and Voya Us 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 Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large and Voya Us.
Diversification Opportunities for Voya Large and Voya Us
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Voya is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap and Voya Stock Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Stock Index 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 Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Stock Index has no effect on the direction of Voya Large i.e., Voya Large and Voya Us go up and down completely randomly.
Pair Corralation between Voya Large and Voya Us
Assuming the 90 days horizon Voya Large Cap is expected to generate 0.92 times more return on investment than Voya Us. However, Voya Large Cap is 1.09 times less risky than Voya Us. It trades about 0.33 of its potential returns per unit of risk. Voya Stock Index is currently generating about 0.18 per unit of risk. If you would invest 651.00 in Voya Large Cap on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Voya Large Cap or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Large Cap vs. Voya Stock Index
Performance |
| Timeline |
| Voya Large Cap |
| Voya Stock Index |
Voya Large and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large and Voya Us
The main advantage of trading using opposite Voya Large and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.| Voya Large vs. First Trust Specialty | Voya Large vs. Financial Industries Fund | Voya Large vs. Financials Ultrasector Profund | Voya Large vs. Royce Global Financial |
| Voya Us vs. Ab Value Fund | Voya Us vs. Eic Value Fund | Voya Us vs. Omni Small Cap Value | Voya Us vs. Versatile Bond Portfolio |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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