Correlation Between Voya Intermediate and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Voya Intermediate and Voya Retirement 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 Intermediate and Voya Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Intermediate Bond and Voya Retirement Growth, you can compare the effects of market volatilities on Voya Intermediate and Voya Retirement 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 Intermediate with a short position of Voya Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Intermediate and Voya Retirement.
Diversification Opportunities for Voya Intermediate and Voya Retirement
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Voya is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Voya Retirement Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Growth and Voya Intermediate 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 Intermediate Bond are associated (or correlated) with Voya Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Growth has no effect on the direction of Voya Intermediate i.e., Voya Intermediate and Voya Retirement go up and down completely randomly.
Pair Corralation between Voya Intermediate and Voya Retirement
Assuming the 90 days horizon Voya Intermediate is expected to generate 2.21 times less return on investment than Voya Retirement. But when comparing it to its historical volatility, Voya Intermediate Bond is 1.56 times less risky than Voya Retirement. It trades about 0.09 of its potential returns per unit of risk. Voya Retirement Growth is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 973.00 in Voya Retirement Growth on September 12, 2024 and sell it today you would earn a total of 264.00 from holding Voya Retirement Growth or generate 27.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Voya Retirement Growth
Performance |
| Timeline |
| Voya Intermediate Bond |
| Voya Retirement Growth |
Voya Intermediate and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Intermediate and Voya Retirement
The main advantage of trading using opposite Voya Intermediate and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Intermediate position performs unexpectedly, Voya Retirement 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 Retirement will offset losses from the drop in Voya Retirement's long position.| Voya Intermediate vs. Global Gold Fund | Voya Intermediate vs. International Investors Gold | Voya Intermediate vs. James Balanced Golden | Voya Intermediate vs. Fidelity Advisor Gold |
| Voya Retirement vs. Qs Large Cap | Voya Retirement vs. Dana Large Cap | Voya Retirement vs. Pace Large Value | Voya Retirement vs. Americafirst Large Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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