Correlation Between Voya Russia and City National
Can any of the company-specific risk be diversified away by investing in both Voya Russia and City National 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 Russia and City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Russia Fund and City National Rochdale, you can compare the effects of market volatilities on Voya Russia and City National 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 Russia with a short position of City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Russia and City National.
Diversification Opportunities for Voya Russia and City National
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and City is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale and Voya Russia 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 Russia Fund are associated (or correlated) with City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Voya Russia i.e., Voya Russia and City National go up and down completely randomly.
Pair Corralation between Voya Russia and City National
Assuming the 90 days horizon Voya Russia Fund is expected to generate 8.97 times more return on investment than City National. However, Voya Russia is 8.97 times more volatile than City National Rochdale. It trades about 0.07 of its potential returns per unit of risk. City National Rochdale is currently generating about 0.06 per unit of risk. If you would invest 37.00 in Voya Russia Fund on September 3, 2024 and sell it today you would earn a total of 31.00 from holding Voya Russia Fund or generate 83.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.91% |
| Values | Daily Returns |
Voya Russia Fund vs. City National Rochdale
Performance |
| Timeline |
| Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| City National Rochdale |
Voya Russia and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Russia and City National
The main advantage of trading using opposite Voya Russia and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Russia position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| Voya Russia vs. Doubleline Global Bond | Voya Russia vs. 361 Global Longshort | Voya Russia vs. Alliancebernstein Global High | Voya Russia vs. Morningstar Global Income |
| City National vs. Doubleline Global Bond | City National vs. Dreyfusstandish Global Fixed | City National vs. Ab Global Real | City National vs. Scharf Global Opportunity |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |