Correlation Between Voya Index and Voya Vacs
Can any of the company-specific risk be diversified away by investing in both Voya Index and Voya Vacs 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 Vacs 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 Vacs Index, you can compare the effects of market volatilities on Voya Index and Voya Vacs 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 Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Voya Vacs.
Diversification Opportunities for Voya Index and Voya Vacs
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Voya is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Plus and Voya Vacs Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Index 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 Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Index has no effect on the direction of Voya Index i.e., Voya Index and Voya Vacs go up and down completely randomly.
Pair Corralation between Voya Index and Voya Vacs
Assuming the 90 days horizon Voya Index Plus is expected to generate 1.29 times more return on investment than Voya Vacs. However, Voya Index is 1.29 times more volatile than Voya Vacs Index. It trades about 0.06 of its potential returns per unit of risk. Voya Vacs Index is currently generating about 0.04 per unit of risk. If you would invest 1,746 in Voya Index Plus on September 12, 2024 and sell it today you would earn a total of 435.00 from holding Voya Index Plus or generate 24.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Voya Index Plus vs. Voya Vacs Index
Performance |
| Timeline |
| Voya Index Plus |
| Voya Vacs Index |
Voya Index and Voya Vacs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Voya Vacs
The main advantage of trading using opposite Voya Index and Voya Vacs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Voya Vacs 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 Vacs will offset losses from the drop in Voya Vacs' long position.| Voya Index vs. Vanguard Mid Cap Index | Voya Index vs. SCOR PK | Voya Index vs. Morningstar Unconstrained Allocation | Voya Index vs. Via Renewables |
| Voya Vacs vs. SCOR PK | Voya Vacs vs. Morningstar Unconstrained Allocation | Voya Vacs vs. Via Renewables | Voya Vacs vs. Bondbloxx ETF Trust |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |