Correlation Between Voya Index and Madison Diversified
Can any of the company-specific risk be diversified away by investing in both Voya Index and Madison Diversified 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 Madison Diversified 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 Madison Diversified Income, you can compare the effects of market volatilities on Voya Index and Madison Diversified 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 Madison Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Madison Diversified.
Diversification Opportunities for Voya Index and Madison Diversified
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Madison is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Plus and Madison Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Madison Diversified 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 Madison Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madison Diversified has no effect on the direction of Voya Index i.e., Voya Index and Madison Diversified go up and down completely randomly.
Pair Corralation between Voya Index and Madison Diversified
If you would invest 1,271 in Madison Diversified Income on October 24, 2024 and sell it today you would earn a total of 19.00 from holding Madison Diversified Income or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.56% |
| Values | Daily Returns |
Voya Index Plus vs. Madison Diversified Income
Performance |
| Timeline |
| Voya Index Plus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Madison Diversified |
Voya Index and Madison Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Madison Diversified
The main advantage of trading using opposite Voya Index and Madison Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Madison Diversified 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 Madison Diversified will offset losses from the drop in Madison Diversified's long position.| Voya Index vs. Prudential High Yield | Voya Index vs. Pace High Yield | Voya Index vs. Federated High Yield | Voya Index vs. Artisan High Income |
| Madison Diversified vs. T Rowe Price | Madison Diversified vs. Rational Strategic Allocation | Madison Diversified vs. Semiconductor Ultrasector Profund | Madison Diversified vs. Locorr Dynamic Equity |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |