Correlation Between Voya Index and Pia High
Can any of the company-specific risk be diversified away by investing in both Voya Index and Pia High 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 Pia High 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 Pia High Yield, you can compare the effects of market volatilities on Voya Index and Pia High 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 Pia High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Pia High.
Diversification Opportunities for Voya Index and Pia High
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Pia is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Plus and Pia High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pia High Yield 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 Pia High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pia High Yield has no effect on the direction of Voya Index i.e., Voya Index and Pia High go up and down completely randomly.
Pair Corralation between Voya Index and Pia High
Assuming the 90 days horizon Voya Index Plus is expected to generate 7.22 times more return on investment than Pia High. However, Voya Index is 7.22 times more volatile than Pia High Yield. It trades about 0.18 of its potential returns per unit of risk. Pia High Yield is currently generating about 0.31 per unit of risk. If you would invest 2,016 in Voya Index Plus on August 28, 2024 and sell it today you would earn a total of 229.00 from holding Voya Index Plus or generate 11.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Index Plus vs. Pia High Yield
Performance |
| Timeline |
| Voya Index Plus |
| Pia High Yield |
Voya Index and Pia High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Pia High
The main advantage of trading using opposite Voya Index and Pia High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Pia High 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 Pia High will offset losses from the drop in Pia High's long position.| Voya Index vs. Ppm High Yield | Voya Index vs. Pimco High Yield | Voya Index vs. Dunham High Yield | Voya Index vs. Pia High Yield |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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