Correlation Between Voya High and Inverse High
Can any of the company-specific risk be diversified away by investing in both Voya High and Inverse 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 High and Inverse High 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 Inverse High Yield, you can compare the effects of market volatilities on Voya High and Inverse 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 High with a short position of Inverse High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Inverse High.
Diversification Opportunities for Voya High and Inverse High
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VOYA and Inverse is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Inverse High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse High Yield 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 Inverse High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse High Yield has no effect on the direction of Voya High i.e., Voya High and Inverse High go up and down completely randomly.
Pair Corralation between Voya High and Inverse High
Assuming the 90 days horizon Voya High Yield is expected to generate 0.56 times more return on investment than Inverse High. However, Voya High Yield is 1.77 times less risky than Inverse High. It trades about 0.24 of its potential returns per unit of risk. Inverse High Yield is currently generating about -0.09 per unit of risk. If you would invest 865.00 in Voya High Yield on October 20, 2024 and sell it today you would earn a total of 10.00 from holding Voya High Yield or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Voya High Yield vs. Inverse High Yield
Performance |
| Timeline |
| Voya High Yield |
| Inverse High Yield |
Voya High and Inverse High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Inverse High
The main advantage of trading using opposite Voya High and Inverse High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Inverse 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 Inverse High will offset losses from the drop in Inverse High's long position.| Voya High vs. Stringer Growth Fund | Voya High vs. Upright Growth Income | Voya High vs. The Hartford Growth | Voya High vs. Artisan Small Cap |
| Inverse High vs. Alphacentric Symmetry Strategy | Inverse High vs. Angel Oak Multi Strategy | Inverse High vs. Saat Defensive Strategy | Inverse High vs. Dow 2x Strategy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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