Correlation Between Voya Investors and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Voya Investors and Voya Retirement 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 Investors and Voya Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Investors Trust and Voya Retirement Solution, you can compare the effects of market volatilities on Voya Investors and Voya Retirement 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 Investors with a short position of Voya Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Investors and Voya Retirement.
Diversification Opportunities for Voya Investors and Voya Retirement
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Voya Investors Trust and Voya Retirement Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Solution and Voya Investors 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 Investors Trust are associated (or correlated) with Voya Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Solution has no effect on the direction of Voya Investors i.e., Voya Investors and Voya Retirement go up and down completely randomly.
Pair Corralation between Voya Investors and Voya Retirement
Assuming the 90 days horizon Voya Investors Trust is expected to generate 21.47 times more return on investment than Voya Retirement. However, Voya Investors is 21.47 times more volatile than Voya Retirement Solution. It trades about 0.04 of its potential returns per unit of risk. Voya Retirement Solution is currently generating about 0.09 per unit of risk. If you would invest 92.00 in Voya Investors Trust on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Voya Investors Trust or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Investors Trust vs. Voya Retirement Solution
Performance |
| Timeline |
| Voya Investors Trust |
| Voya Retirement Solution |
Voya Investors and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Investors and Voya Retirement
The main advantage of trading using opposite Voya Investors and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Investors position performs unexpectedly, Voya Retirement 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 Voya Retirement will offset losses from the drop in Voya Retirement's long position.| Voya Investors vs. Touchstone Large Cap | Voya Investors vs. Pace Large Value | Voya Investors vs. Aqr Large Cap | Voya Investors vs. Dana Large Cap |
| Voya Retirement vs. American Funds 2060 | Voya Retirement vs. American Funds 2060 | Voya Retirement vs. American Funds 2060 | Voya Retirement 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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