Correlation Between Voya High and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Voya High and Ambrus Core 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 Ambrus Core 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 Ambrus Core Bond, you can compare the effects of market volatilities on Voya High and Ambrus Core 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Ambrus Core.
Diversification Opportunities for Voya High and Ambrus Core
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Ambrus is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond 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 Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Voya High i.e., Voya High and Ambrus Core go up and down completely randomly.
Pair Corralation between Voya High and Ambrus Core
Assuming the 90 days horizon Voya High Yield is expected to generate 1.16 times more return on investment than Ambrus Core. However, Voya High is 1.16 times more volatile than Ambrus Core Bond. It trades about 0.11 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.06 per unit of risk. If you would invest 750.00 in Voya High Yield on October 11, 2024 and sell it today you would earn a total of 122.00 from holding Voya High Yield or generate 16.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Ambrus Core Bond
Performance |
| Timeline |
| Voya High Yield |
| Ambrus Core Bond |
Voya High and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Ambrus Core
The main advantage of trading using opposite Voya High and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Voya High vs. Dreyfus High Yield | Voya High vs. Blackrock High Yield | Voya High vs. Jpmorgan High Yield | Voya High vs. Federated High Yield |
| Ambrus Core vs. Angel Oak Ultrashort | Ambrus Core vs. Transam Short Term Bond | Ambrus Core vs. Virtus Multi Sector Short | Ambrus Core vs. Chartwell Short Duration |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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