Correlation Between Voya Solution and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Voya Solution and Aqr Managed 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 Solution and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Solution Income and Aqr Managed Futures, you can compare the effects of market volatilities on Voya Solution and Aqr Managed 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 Solution with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Aqr Managed.
Diversification Opportunities for Voya Solution and Aqr Managed
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Aqr is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Income and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures and Voya Solution 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 Solution Income are associated (or correlated) with Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Voya Solution i.e., Voya Solution and Aqr Managed go up and down completely randomly.
Pair Corralation between Voya Solution and Aqr Managed
Assuming the 90 days horizon Voya Solution Income is expected to generate 0.41 times more return on investment than Aqr Managed. However, Voya Solution Income is 2.43 times less risky than Aqr Managed. It trades about 0.08 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.02 per unit of risk. If you would invest 913.00 in Voya Solution Income on September 3, 2024 and sell it today you would earn a total of 147.00 from holding Voya Solution Income or generate 16.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Solution Income vs. Aqr Managed Futures
Performance |
| Timeline |
| Voya Solution Income |
| Aqr Managed Futures |
Voya Solution and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Solution and Aqr Managed
The main advantage of trading using opposite Voya Solution and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution position performs unexpectedly, Aqr Managed 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 Aqr Managed will offset losses from the drop in Aqr Managed's long position.| Voya Solution vs. Aqr Managed Futures | Voya Solution vs. Ab Bond Inflation | Voya Solution vs. Lord Abbett Inflation | Voya Solution vs. Fidelity Sai Inflationfocused |
| Aqr Managed vs. The Hartford Equity | Aqr Managed vs. Locorr Dynamic Equity | Aqr Managed vs. Jpmorgan Equity Income | Aqr Managed vs. Multimedia Portfolio Multimedia |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |