Correlation Between Voya Us and Live Oak
Can any of the company-specific risk be diversified away by investing in both Voya Us and Live Oak 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 Live Oak 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 Live Oak Health, you can compare the effects of market volatilities on Voya Us and Live Oak 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 Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Us and Live Oak.
Diversification Opportunities for Voya Us and Live Oak
Excellent diversification
The 3 months correlation between Voya and Live is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Voya Stock Index and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health 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 Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Voya Us i.e., Voya Us and Live Oak go up and down completely randomly.
Pair Corralation between Voya Us and Live Oak
Assuming the 90 days horizon Voya Stock Index is expected to generate 1.39 times more return on investment than Live Oak. However, Voya Us is 1.39 times more volatile than Live Oak Health. It trades about 0.05 of its potential returns per unit of risk. Live Oak Health is currently generating about 0.05 per unit of risk. If you would invest 1,916 in Voya Stock Index on September 3, 2024 and sell it today you would earn a total of 147.00 from holding Voya Stock Index or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Stock Index vs. Live Oak Health
Performance |
| Timeline |
| Voya Stock Index |
| Live Oak Health |
Voya Us and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Us and Live Oak
The main advantage of trading using opposite Voya Us and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Us position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.| Voya Us vs. Small Cap Value | Voya Us vs. Champlain Small | Voya Us vs. Artisan Small Cap | Voya Us vs. Qs Small Capitalization |
| Live Oak vs. Vanguard Health Care | Live Oak vs. Vanguard Health Care | Live Oak vs. T Rowe Price | Live Oak vs. T Rowe Price |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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