Correlation Between Voya Russia and Polen International
Can any of the company-specific risk be diversified away by investing in both Voya Russia and Polen International 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 Polen International 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 Polen International Growth, you can compare the effects of market volatilities on Voya Russia and Polen International 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 Polen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Russia and Polen International.
Diversification Opportunities for Voya Russia and Polen International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Polen is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and Polen International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen International 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 Polen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen International has no effect on the direction of Voya Russia i.e., Voya Russia and Polen International go up and down completely randomly.
Pair Corralation between Voya Russia and Polen International
Assuming the 90 days horizon Voya Russia Fund is expected to under-perform the Polen International. In addition to that, Voya Russia is 3.88 times more volatile than Polen International Growth. It trades about -0.05 of its total potential returns per unit of risk. Polen International Growth is currently generating about 0.03 per unit of volatility. If you would invest 1,480 in Polen International Growth on September 2, 2024 and sell it today you would earn a total of 144.00 from holding Polen International Growth or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.06% |
| Values | Daily Returns |
Voya Russia Fund vs. Polen International Growth
Performance |
| Timeline |
| Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Polen International |
Voya Russia and Polen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Russia and Polen International
The main advantage of trading using opposite Voya Russia and Polen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Russia position performs unexpectedly, Polen International 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 Polen International will offset losses from the drop in Polen International's long position.| Voya Russia vs. Fidelity Series Government | Voya Russia vs. Inverse Government Long | Voya Russia vs. Franklin Adjustable Government | Voya Russia vs. Blackrock Government Bond |
| Polen International vs. Polen Growth Fund | Polen International vs. Congress Mid Cap | Polen International vs. Polen Global Growth | Polen International vs. Polen Small Pany |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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