Correlation Between Voya Russia and Sit Mid
Can any of the company-specific risk be diversified away by investing in both Voya Russia and Sit Mid 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 Sit Mid 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 Sit Mid Cap, you can compare the effects of market volatilities on Voya Russia and Sit Mid 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 Sit Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Russia and Sit Mid.
Diversification Opportunities for Voya Russia and Sit Mid
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VOYA and SIT is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and Sit Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Mid Cap 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 Sit Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Mid Cap has no effect on the direction of Voya Russia i.e., Voya Russia and Sit Mid go up and down completely randomly.
Pair Corralation between Voya Russia and Sit Mid
Assuming the 90 days horizon Voya Russia Fund is expected to generate 7.94 times more return on investment than Sit Mid. However, Voya Russia is 7.94 times more volatile than Sit Mid Cap. It trades about 0.07 of its potential returns per unit of risk. Sit Mid Cap is currently generating about 0.07 per unit of risk. If you would invest 37.00 in Voya Russia Fund on August 30, 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 | 31.31% |
| Values | Daily Returns |
Voya Russia Fund vs. Sit Mid Cap
Performance |
| Timeline |
| Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sit Mid Cap |
Voya Russia and Sit Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Russia and Sit Mid
The main advantage of trading using opposite Voya Russia and Sit Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Russia position performs unexpectedly, Sit Mid 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 Sit Mid will offset losses from the drop in Sit Mid's long position.| Voya Russia vs. Calvert Global Energy | Voya Russia vs. Firsthand Alternative Energy | Voya Russia vs. Goldman Sachs Mlp | Voya Russia vs. Oil Gas Ultrasector |
| Sit Mid vs. Live Oak Health | Sit Mid vs. Hartford Healthcare Hls | Sit Mid vs. Highland Longshort Healthcare | Sit Mid vs. Alphacentric Lifesci Healthcare |
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.
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