Correlation Between Voya Government and High Yield
Can any of the company-specific risk be diversified away by investing in both Voya Government and High Yield 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 High Yield 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 High Yield Portfolio, you can compare the effects of market volatilities on Voya Government and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Government and High Yield.
Diversification Opportunities for Voya Government and High Yield
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voya and High is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Government Money and High Yield Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Portfolio 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Portfolio has no effect on the direction of Voya Government i.e., Voya Government and High Yield go up and down completely randomly.
Pair Corralation between Voya Government and High Yield
If you would invest 852.00 in High Yield Portfolio on November 3, 2024 and sell it today you would earn a total of 8.00 from holding High Yield Portfolio or generate 0.94% 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. High Yield Portfolio
Performance |
| Timeline |
| Voya Government Money |
| High Yield Portfolio |
Voya Government and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Government and High Yield
The main advantage of trading using opposite Voya Government and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Government position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield'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 |
| High Yield vs. Msift High Yield | High Yield vs. City National Rochdale | High Yield vs. Strategic Advisers Income | High Yield vs. Virtus High Yield |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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