Correlation Between Voya Multi and Voya Index
Can any of the company-specific risk be diversified away by investing in both Voya Multi 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 Voya Multi and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Multi Manager International and Voya Index Solution, you can compare the effects of market volatilities on Voya Multi 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 Voya Multi with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi and Voya Index.
Diversification Opportunities for Voya Multi and Voya Index
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Voya Multi Manager Internation 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 Voya Multi 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 Multi Manager International 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 Voya Multi i.e., Voya Multi and Voya Index go up and down completely randomly.
Pair Corralation between Voya Multi and Voya Index
Assuming the 90 days horizon Voya Multi Manager International is expected to generate 1.66 times more return on investment than Voya Index. However, Voya Multi is 1.66 times more volatile than Voya Index Solution. It trades about 0.17 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.1 per unit of risk. If you would invest 5,835 in Voya Multi Manager International on October 25, 2024 and sell it today you would earn a total of 141.00 from holding Voya Multi Manager International or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Voya Multi Manager Internation vs. Voya Index Solution
Performance |
| Timeline |
| Voya Multi Manager |
| Voya Index Solution |
Voya Multi and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Multi and Voya Index
The main advantage of trading using opposite Voya Multi and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi 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.| Voya Multi vs. Large Cap Growth Profund | Voya Multi vs. Tiaa Cref Large Cap Value | Voya Multi vs. Qs Large Cap | Voya Multi vs. Qs Large Cap |
| Voya Index vs. Guidepath Conservative Income | Voya Index vs. Tiaa Cref Lifestyle Servative | Voya Index vs. Delaware Limited Term Diversified | Voya Index vs. Allianzgi Diversified Income |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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