Correlation Between Voya Multi-manager and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Voya Multi-manager 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 Voya Multi-manager and Voya Bond 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 Bond Index, you can compare the effects of market volatilities on Voya Multi-manager 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 Voya Multi-manager with a short position of Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi-manager and Voya Bond.
Diversification Opportunities for Voya Multi-manager and Voya Bond
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Voya Multi Manager Internation 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 Voya Multi-manager 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 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 Voya Multi-manager i.e., Voya Multi-manager and Voya Bond go up and down completely randomly.
Pair Corralation between Voya Multi-manager and Voya Bond
Assuming the 90 days horizon Voya Multi Manager International is expected to generate 2.27 times more return on investment than Voya Bond. However, Voya Multi-manager is 2.27 times more volatile than Voya Bond Index. It trades about -0.05 of its potential returns per unit of risk. Voya Bond Index is currently generating about -0.13 per unit of risk. If you would invest 5,584 in Voya Multi Manager International on October 31, 2024 and sell it today you would lose (177.00) from holding Voya Multi Manager International or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Multi Manager Internation vs. Voya Bond Index
Performance |
| Timeline |
| Voya Multi Manager |
| Voya Bond Index |
Voya Multi-manager and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Multi-manager and Voya Bond
The main advantage of trading using opposite Voya Multi-manager and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi-manager 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.| Voya Multi-manager vs. Stone Ridge Diversified | Voya Multi-manager vs. Federated Hermes Conservative | Voya Multi-manager vs. Vy T Rowe | Voya Multi-manager vs. Guidepath Conservative Income |
| Voya Bond vs. Inverse Government Long | Voya Bond vs. Federated Government Ultrashort | Voya Bond vs. Hsbc Government Money | Voya Bond vs. Dunham Porategovernment Bond |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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