Correlation Between Voya High and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Voya High and Dow Jones 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 High and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Dow Jones Industrial, you can compare the effects of market volatilities on Voya High and Dow Jones 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 High with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Dow Jones.
Diversification Opportunities for Voya High and Dow Jones
Very poor diversification
The 3 months correlation between VOYA and Dow is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Voya High 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 High Yield are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Voya High i.e., Voya High and Dow Jones go up and down completely randomly.
Pair Corralation between Voya High and Dow Jones
Assuming the 90 days horizon Voya High Yield is expected to generate 0.21 times more return on investment than Dow Jones. However, Voya High Yield is 4.66 times less risky than Dow Jones. It trades about -0.35 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.23 per unit of risk. If you would invest 882.00 in Voya High Yield on October 11, 2024 and sell it today you would lose (10.00) from holding Voya High Yield or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Voya High Yield vs. Dow Jones Industrial
Performance |
| Timeline |
Voya High and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Voya High Yield
Pair trading matchups for Voya High
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Voya High and Dow Jones
The main advantage of trading using opposite Voya High and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Voya High vs. Eic Value Fund | Voya High vs. Semiconductor Ultrasector Profund | Voya High vs. Ips Strategic Capital | Voya High vs. Rbb Fund |
| Dow Jones vs. Toro | Dow Jones vs. Foot Locker | Dow Jones vs. Abercrombie Fitch | Dow Jones vs. 51Talk Online Education |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |