Correlation Between MAG SILVER and Voya Financial
Can any of the company-specific risk be diversified away by investing in both MAG SILVER and Voya Financial 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 MAG SILVER and Voya Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG SILVER and Voya Financial, you can compare the effects of market volatilities on MAG SILVER and Voya Financial 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 MAG SILVER with a short position of Voya Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and Voya Financial.
Diversification Opportunities for MAG SILVER and Voya Financial
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MAG and Voya is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and Voya Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Financial and MAG SILVER 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 MAG SILVER are associated (or correlated) with Voya Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Financial has no effect on the direction of MAG SILVER i.e., MAG SILVER and Voya Financial go up and down completely randomly.
Pair Corralation between MAG SILVER and Voya Financial
Assuming the 90 days trading horizon MAG SILVER is expected to under-perform the Voya Financial. In addition to that, MAG SILVER is 1.76 times more volatile than Voya Financial. It trades about -0.08 of its total potential returns per unit of risk. Voya Financial is currently generating about 0.01 per unit of volatility. If you would invest 6,550 in Voya Financial on October 15, 2024 and sell it today you would earn a total of 0.00 from holding Voya Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG SILVER vs. Voya Financial
Performance |
| Timeline |
| MAG SILVER |
| Voya Financial |
MAG SILVER and Voya Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG SILVER and Voya Financial
The main advantage of trading using opposite MAG SILVER and Voya Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER position performs unexpectedly, Voya Financial 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 Financial will offset losses from the drop in Voya Financial's long position.| MAG SILVER vs. Goodyear Tire Rubber | MAG SILVER vs. Benchmark Electronics | MAG SILVER vs. Nanjing Panda Electronics | MAG SILVER vs. Vulcan Materials |
| Voya Financial vs. CANON MARKETING JP | Voya Financial vs. Tradeweb Markets | Voya Financial vs. TRADELINK ELECTRON | Voya Financial vs. MAG SILVER |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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