Correlation Between Voya Retirement and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Voya Retirement and Mainstay 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 Mainstay 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 Mainstay High Yield, you can compare the effects of market volatilities on Voya Retirement and Mainstay 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 Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Retirement and Mainstay High.
Diversification Opportunities for Voya Retirement and Mainstay High
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Mainstay is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Voya Retirement Moderate and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay 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 Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Voya Retirement i.e., Voya Retirement and Mainstay High go up and down completely randomly.
Pair Corralation between Voya Retirement and Mainstay High
Assuming the 90 days horizon Voya Retirement Moderate is expected to generate 1.38 times more return on investment than Mainstay High. However, Voya Retirement is 1.38 times more volatile than Mainstay High Yield. It trades about 0.26 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.13 per unit of risk. If you would invest 990.00 in Voya Retirement Moderate on November 8, 2024 and sell it today you would earn a total of 22.00 from holding Voya Retirement Moderate or generate 2.22% 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. Mainstay High Yield
Performance |
| Timeline |
| Voya Retirement Moderate |
| Mainstay High Yield |
Voya Retirement and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Retirement and Mainstay High
The main advantage of trading using opposite Voya Retirement and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Retirement position performs unexpectedly, Mainstay 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 Mainstay High will offset losses from the drop in Mainstay High's long position.| Voya Retirement vs. Gold Portfolio Fidelity | Voya Retirement vs. Great West Goldman Sachs | Voya Retirement vs. Short Precious Metals | Voya Retirement vs. Global Gold Fund |
| Mainstay High vs. Massmutual Premier Inflation Protected | Mainstay High vs. Aqr Managed Futures | Mainstay High vs. Tiaa Cref Inflation Linked Bond | Mainstay High vs. Guggenheim Managed Futures |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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