Correlation Between Voya Government and American High-income
Can any of the company-specific risk be diversified away by investing in both Voya Government and American High-income 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 Government and American High-income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Government Money and American High Income Municipal, you can compare the effects of market volatilities on Voya Government and American High-income 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 Government with a short position of American High-income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Government and American High-income.
Diversification Opportunities for Voya Government and American High-income
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voya and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Government Money and American High Income Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American High Income and Voya Government 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 Government Money are associated (or correlated) with American High-income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American High Income has no effect on the direction of Voya Government i.e., Voya Government and American High-income go up and down completely randomly.
Pair Corralation between Voya Government and American High-income
If you would invest 1,531 in American High Income Municipal on November 4, 2024 and sell it today you would earn a total of 1.00 from holding American High Income Municipal or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Government Money vs. American High Income Municipal
Performance |
| Timeline |
| Voya Government Money |
| American High Income |
Voya Government and American High-income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Government and American High-income
The main advantage of trading using opposite Voya Government and American High-income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Government position performs unexpectedly, American High-income 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 American High-income will offset losses from the drop in American High-income's long position.| Voya Government vs. Elfun Government Money | Voya Government vs. Jpmorgan Government Bond | Voya Government vs. John Hancock Government | Voya Government vs. Blackrock Government Bond |
| American High-income vs. Fbjygx | American High-income vs. Arrow Managed Futures | American High-income vs. Fkhemx | American High-income vs. Fabwx |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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