Correlation Between Voya Global and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Voya Global and Voya Solution 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 Global and Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Perspectives and Voya Solution 2060, you can compare the effects of market volatilities on Voya Global and Voya Solution 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 Global with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Voya Solution.
Diversification Opportunities for Voya Global and Voya Solution
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Voya is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Perspectives and Voya Solution 2060 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution 2060 and Voya Global 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 Global Perspectives are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution 2060 has no effect on the direction of Voya Global i.e., Voya Global and Voya Solution go up and down completely randomly.
Pair Corralation between Voya Global and Voya Solution
Assuming the 90 days horizon Voya Global is expected to generate 1.26 times less return on investment than Voya Solution. But when comparing it to its historical volatility, Voya Global Perspectives is 1.2 times less risky than Voya Solution. It trades about 0.33 of its potential returns per unit of risk. Voya Solution 2060 is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,186 in Voya Solution 2060 on September 1, 2024 and sell it today you would earn a total of 51.00 from holding Voya Solution 2060 or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Global Perspectives vs. Voya Solution 2060
Performance |
| Timeline |
| Voya Global Perspectives |
| Voya Solution 2060 |
Voya Global and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Voya Solution
The main advantage of trading using opposite Voya Global and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.| Voya Global vs. Asg Managed Futures | Voya Global vs. Ab Bond Inflation | Voya Global vs. Aqr Managed Futures | Voya Global vs. Cref Inflation Linked Bond |
| Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Limited Maturity | Voya Solution vs. Voya Limited Maturity |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |