Correlation Between Voya High and Allianzgi Technology
Can any of the company-specific risk be diversified away by investing in both Voya High and Allianzgi Technology 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 Allianzgi Technology 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 Allianzgi Technology Fund, you can compare the effects of market volatilities on Voya High and Allianzgi Technology 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 Allianzgi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Allianzgi Technology.
Diversification Opportunities for Voya High and Allianzgi Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Allianzgi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Allianzgi Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Technology 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 Allianzgi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Technology has no effect on the direction of Voya High i.e., Voya High and Allianzgi Technology go up and down completely randomly.
Pair Corralation between Voya High and Allianzgi Technology
Assuming the 90 days horizon Voya High is expected to generate 1.09 times less return on investment than Allianzgi Technology. But when comparing it to its historical volatility, Voya High Yield is 6.93 times less risky than Allianzgi Technology. It trades about 0.32 of its potential returns per unit of risk. Allianzgi Technology Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,549 in Allianzgi Technology Fund on October 25, 2024 and sell it today you would earn a total of 78.00 from holding Allianzgi Technology Fund or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Allianzgi Technology Fund
Performance |
| Timeline |
| Voya High Yield |
| Allianzgi Technology |
Voya High and Allianzgi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Allianzgi Technology
The main advantage of trading using opposite Voya High and Allianzgi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Allianzgi Technology 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 Allianzgi Technology will offset losses from the drop in Allianzgi Technology's long position.| Voya High vs. Short Term Investment Trust | Voya High vs. Fidelity Flex Servative | Voya High vs. Alpine Ultra Short | Voya High vs. Ultra Short Fixed Income |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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