Correlation Between Voya Index and Voya Global
Can any of the company-specific risk be diversified away by investing in both Voya Index and Voya Global 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 Index and Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Index Plus and Voya Global Bond, you can compare the effects of market volatilities on Voya Index and Voya Global 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 Index with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Voya Global.
Diversification Opportunities for Voya Index and Voya Global
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voya and Voya is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Plus and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond and Voya Index 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 Index Plus are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Voya Index i.e., Voya Index and Voya Global go up and down completely randomly.
Pair Corralation between Voya Index and Voya Global
Assuming the 90 days horizon Voya Index Plus is expected to generate 2.21 times more return on investment than Voya Global. However, Voya Index is 2.21 times more volatile than Voya Global Bond. It trades about 0.1 of its potential returns per unit of risk. Voya Global Bond is currently generating about 0.03 per unit of risk. If you would invest 1,969 in Voya Index Plus on August 30, 2024 and sell it today you would earn a total of 1,112 from holding Voya Index Plus or generate 56.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Index Plus vs. Voya Global Bond
Performance |
| Timeline |
| Voya Index Plus |
| Voya Global Bond |
Voya Index and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Voya Global
The main advantage of trading using opposite Voya Index and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Voya Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index vs. Voya Limited Maturity |
| Voya Global vs. T Rowe Price | Voya Global vs. Ab Value Fund | Voya Global vs. Materials Portfolio Fidelity | Voya Global vs. Qs 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |