Correlation Between Voya High and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Voya High and Emerging Markets 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 High and Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Emerging Markets Portfolio, you can compare the effects of market volatilities on Voya High and Emerging Markets 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 High with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Emerging Markets.
Diversification Opportunities for Voya High and Emerging Markets
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Emerging is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Emerging Markets Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Por and Voya High 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 High Yield are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Por has no effect on the direction of Voya High i.e., Voya High and Emerging Markets go up and down completely randomly.
Pair Corralation between Voya High and Emerging Markets
Assuming the 90 days horizon Voya High Yield is expected to generate 0.29 times more return on investment than Emerging Markets. However, Voya High Yield is 3.41 times less risky than Emerging Markets. It trades about 0.29 of its potential returns per unit of risk. Emerging Markets Portfolio is currently generating about -0.03 per unit of risk. If you would invest 865.00 in Voya High Yield on October 26, 2024 and sell it today you would earn a total of 10.00 from holding Voya High Yield or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Emerging Markets Portfolio
Performance |
| Timeline |
| Voya High Yield |
| Emerging Markets Por |
Voya High and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Emerging Markets
The main advantage of trading using opposite Voya High and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Voya High vs. Growth Fund Of | Voya High vs. Issachar Fund Class | Voya High vs. Boyd Watterson Limited | Voya High vs. Arrow Dwa Balanced |
| Emerging Markets vs. Voya High Yield | Emerging Markets vs. Buffalo High Yield | Emerging Markets vs. Siit High Yield | Emerging Markets vs. Virtus High Yield |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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