Correlation Between Voya High and Vanguard Total
Can any of the company-specific risk be diversified away by investing in both Voya High and Vanguard Total 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 Vanguard Total 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 Vanguard Total International, you can compare the effects of market volatilities on Voya High and Vanguard Total 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 Vanguard Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Vanguard Total.
Diversification Opportunities for Voya High and Vanguard Total
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Voya and Vanguard is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Vanguard Total International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total Inter 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 Vanguard Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total Inter has no effect on the direction of Voya High i.e., Voya High and Vanguard Total go up and down completely randomly.
Pair Corralation between Voya High and Vanguard Total
Assuming the 90 days horizon Voya High Yield is expected to generate 0.26 times more return on investment than Vanguard Total. However, Voya High Yield is 3.84 times less risky than Vanguard Total. It trades about -0.29 of its potential returns per unit of risk. Vanguard Total International is currently generating about -0.33 per unit of risk. If you would invest 881.00 in Voya High Yield on October 11, 2024 and sell it today you would lose (9.00) from holding Voya High Yield or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Vanguard Total International
Performance |
| Timeline |
| Voya High Yield |
| Vanguard Total Inter |
Voya High and Vanguard Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Vanguard Total
The main advantage of trading using opposite Voya High and Vanguard Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Vanguard Total 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 Vanguard Total will offset losses from the drop in Vanguard Total'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 |
| Vanguard Total vs. Hsbc Government Money | Vanguard Total vs. Elfun Government Money | Vanguard Total vs. Franklin Adjustable Government | Vanguard Total vs. Us Government Securities |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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