Correlation Between Voya Retirement and Federated High
Can any of the company-specific risk be diversified away by investing in both Voya Retirement and Federated 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 Retirement and Federated High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Retirement Moderate and Federated High Yield, you can compare the effects of market volatilities on Voya Retirement and Federated 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 Retirement with a short position of Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Retirement and Federated High.
Diversification Opportunities for Voya Retirement and Federated High
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VOYA and Federated is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Voya Retirement Moderate and Federated High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Yield and Voya Retirement 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 Retirement Moderate are associated (or correlated) with Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Yield has no effect on the direction of Voya Retirement i.e., Voya Retirement and Federated High go up and down completely randomly.
Pair Corralation between Voya Retirement and Federated High
Assuming the 90 days horizon Voya Retirement Moderate is expected to generate 1.97 times more return on investment than Federated High. However, Voya Retirement is 1.97 times more volatile than Federated High Yield. It trades about 0.19 of its potential returns per unit of risk. Federated High Yield is currently generating about 0.19 per unit of risk. If you would invest 990.00 in Voya Retirement Moderate on November 1, 2024 and sell it today you would earn a total of 15.00 from holding Voya Retirement Moderate or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Retirement Moderate vs. Federated High Yield
Performance |
| Timeline |
| Voya Retirement Moderate |
| Federated High Yield |
Voya Retirement and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Retirement and Federated High
The main advantage of trading using opposite Voya Retirement and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Retirement position performs unexpectedly, Federated 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 Federated High will offset losses from the drop in Federated High's long position.| Voya Retirement vs. Voya Bond Index | Voya Retirement vs. Voya Bond Index | Voya Retirement vs. Voya Limited Maturity | Voya Retirement vs. Voya Limited Maturity |
| Federated High vs. American Funds Retirement | Federated High vs. Hartford Moderate Allocation | Federated High vs. Calvert Moderate Allocation | Federated High vs. Voya Retirement Moderate |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |