Correlation Between Voya Us and Icon Bond
Can any of the company-specific risk be diversified away by investing in both Voya Us and Icon Bond 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 Us and Icon Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Stock Index and Icon Bond Fund, you can compare the effects of market volatilities on Voya Us and Icon Bond 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 Us with a short position of Icon Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Us and Icon Bond.
Diversification Opportunities for Voya Us and Icon Bond
Poor diversification
The 3 months correlation between Voya and ICON is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Voya Stock Index and Icon Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Bond Fund and Voya Us 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 Stock Index are associated (or correlated) with Icon Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Bond Fund has no effect on the direction of Voya Us i.e., Voya Us and Icon Bond go up and down completely randomly.
Pair Corralation between Voya Us and Icon Bond
Assuming the 90 days horizon Voya Stock Index is expected to generate 8.81 times more return on investment than Icon Bond. However, Voya Us is 8.81 times more volatile than Icon Bond Fund. It trades about 0.03 of its potential returns per unit of risk. Icon Bond Fund is currently generating about 0.25 per unit of risk. If you would invest 1,891 in Voya Stock Index on September 3, 2024 and sell it today you would earn a total of 74.00 from holding Voya Stock Index or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Stock Index vs. Icon Bond Fund
Performance |
| Timeline |
| Voya Stock Index |
| Icon Bond Fund |
Voya Us and Icon Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Us and Icon Bond
The main advantage of trading using opposite Voya Us and Icon Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Us position performs unexpectedly, Icon Bond 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 Icon Bond will offset losses from the drop in Icon Bond's long position.| Voya Us vs. Vanguard Total Stock | Voya Us vs. Vanguard 500 Index | Voya Us vs. Vanguard Total Stock | Voya Us vs. Vanguard Total Stock |
| Icon Bond vs. Delaware Limited Term Diversified | Icon Bond vs. Principal Lifetime Hybrid | Icon Bond vs. Wasatch Small Cap | Icon Bond vs. Massmutual Premier Diversified |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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