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 Solution, 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
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Voya is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Voya Retirement Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Solution 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 Solution 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 5.04 times less return on investment than Voya Retirement. But when comparing it to its historical volatility, Voya Intermediate Bond is 1.62 times less risky than Voya Retirement. It trades about 0.09 of its potential returns per unit of risk. Voya Retirement Solution is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,376 in Voya Retirement Solution on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Voya Retirement Solution or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Voya Retirement Solution
Performance |
| Timeline |
| Voya Intermediate Bond |
| Voya Retirement Solution |
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. Ab Bond Inflation | Voya Intermediate vs. Lord Abbett Inflation | Voya Intermediate vs. Ab Bond Inflation | Voya Intermediate vs. Guidepath Managed Futures |
| Voya Retirement vs. American Funds 2060 | Voya Retirement vs. American Funds 2060 | Voya Retirement vs. American Funds 2060 | Voya Retirement vs. T Rowe Price |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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