Correlation Between Voya Intermediate and Voya Large-cap
Can any of the company-specific risk be diversified away by investing in both Voya Intermediate and Voya Large-cap 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 Large-cap 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 Large Cap Growth, you can compare the effects of market volatilities on Voya Intermediate and Voya Large-cap 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 Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Intermediate and Voya Large-cap.
Diversification Opportunities for Voya Intermediate and Voya Large-cap
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voya and VOYA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Voya Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Large Cap 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 Large-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Large Cap has no effect on the direction of Voya Intermediate i.e., Voya Intermediate and Voya Large-cap go up and down completely randomly.
Pair Corralation between Voya Intermediate and Voya Large-cap
Assuming the 90 days horizon Voya Intermediate Bond is expected to under-perform the Voya Large-cap. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Intermediate Bond is 3.54 times less risky than Voya Large-cap. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Voya Large Cap Growth is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,908 in Voya Large Cap Growth on August 25, 2024 and sell it today you would earn a total of 274.00 from holding Voya Large Cap Growth or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Voya Large Cap Growth
Performance |
| Timeline |
| Voya Intermediate Bond |
| Voya Large Cap |
Voya Intermediate and Voya Large-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Intermediate and Voya Large-cap
The main advantage of trading using opposite Voya Intermediate and Voya Large-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Intermediate position performs unexpectedly, Voya Large-cap 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 Large-cap will offset losses from the drop in Voya Large-cap's long position.| Voya Intermediate vs. Dunham Porategovernment Bond | Voya Intermediate vs. Inverse Government Long | Voya Intermediate vs. Ab Government Exchange | Voya Intermediate vs. Dws Government Money |
| Voya Large-cap vs. Voya Bond Index | Voya Large-cap vs. Voya Bond Index | Voya Large-cap vs. Voya Limited Maturity | Voya Large-cap 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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