Correlation Between Large Cap and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Large Cap and Voya Bond 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 Large Cap and Voya Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Large Cap Growth Profund and Voya Bond Index, you can compare the effects of market volatilities on Large Cap and Voya Bond 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 Large Cap with a short position of Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Large Cap and Voya Bond.
Diversification Opportunities for Large Cap and Voya Bond
Excellent diversification
The 3 months correlation between Large and Voya is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Large Cap Growth Profund and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Large Cap 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 Large Cap Growth Profund are associated (or correlated) with Voya Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Large Cap i.e., Large Cap and Voya Bond go up and down completely randomly.
Pair Corralation between Large Cap and Voya Bond
Assuming the 90 days horizon Large Cap Growth Profund is expected to generate 2.88 times more return on investment than Voya Bond. However, Large Cap is 2.88 times more volatile than Voya Bond Index. It trades about 0.21 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.09 per unit of risk. If you would invest 4,505 in Large Cap Growth Profund on September 15, 2024 and sell it today you would earn a total of 164.00 from holding Large Cap Growth Profund or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Large Cap Growth Profund vs. Voya Bond Index
Performance |
| Timeline |
| Large Cap Growth |
| Voya Bond Index |
Large Cap and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Large Cap and Voya Bond
The main advantage of trading using opposite Large Cap and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Large Cap position performs unexpectedly, Voya Bond 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 Voya Bond will offset losses from the drop in Voya Bond's long position.| Large Cap vs. Short Real Estate | Large Cap vs. Ultrashort Mid Cap Profund | Large Cap vs. Ultrashort Mid Cap Profund | Large Cap vs. Technology Ultrasector Profund |
| Voya Bond vs. Dunham Large Cap | Voya Bond vs. Lord Abbett Affiliated | Voya Bond vs. Qs Large Cap | Voya Bond vs. Large Cap Growth Profund |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |