Correlation Between Great West and Voya Index
Can any of the company-specific risk be diversified away by investing in both Great West and Voya Index 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 Great West and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Goldman Sachs and Voya Index Solution, you can compare the effects of market volatilities on Great West and Voya Index 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 Great West with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great West and Voya Index.
Diversification Opportunities for Great West and Voya Index
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Voya is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Great West Goldman Sachs and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Great West 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 Great West Goldman Sachs are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Great West i.e., Great West and Voya Index go up and down completely randomly.
Pair Corralation between Great West and Voya Index
Assuming the 90 days horizon Great West is expected to generate 1.16 times less return on investment than Voya Index. In addition to that, Great West is 1.64 times more volatile than Voya Index Solution. It trades about 0.06 of its total potential returns per unit of risk. Voya Index Solution is currently generating about 0.11 per unit of volatility. If you would invest 1,250 in Voya Index Solution on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Voya Index Solution or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Great West Goldman Sachs vs. Voya Index Solution
Performance |
| Timeline |
| Great West Goldman |
| Voya Index Solution |
Great West and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great West and Voya Index
The main advantage of trading using opposite Great West and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great West position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| Great West vs. Fm Investments Large | Great West vs. Pace Large Growth | Great West vs. T Rowe Price | Great West vs. Aqr Large Cap |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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