Correlation Between Voya Multi-manager and Voya Global
Can any of the company-specific risk be diversified away by investing in both Voya Multi-manager and Voya Global 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 Global 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 Global Equity, you can compare the effects of market volatilities on Voya Multi-manager and Voya Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi-manager and Voya Global.
Diversification Opportunities for Voya Multi-manager and Voya Global
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 Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Voya Multi-manager i.e., Voya Multi-manager and Voya Global go up and down completely randomly.
Pair Corralation between Voya Multi-manager and Voya Global
Assuming the 90 days horizon Voya Multi-manager is expected to generate 1.33 times less return on investment than Voya Global. In addition to that, Voya Multi-manager is 1.38 times more volatile than Voya Global Equity. It trades about 0.04 of its total potential returns per unit of risk. Voya Global Equity is currently generating about 0.07 per unit of volatility. If you would invest 3,836 in Voya Global Equity on November 1, 2024 and sell it today you would earn a total of 833.00 from holding Voya Global Equity or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Voya Multi Manager Internation vs. Voya Global Equity
Performance |
| Timeline |
| Voya Multi Manager |
| Voya Global Equity |
Voya Multi-manager and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Multi-manager and Voya Global
The main advantage of trading using opposite Voya Multi-manager and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi-manager position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Voya Multi-manager vs. Western Assets Emerging | Voya Multi-manager vs. Wasatch Frontier Emerging | Voya Multi-manager vs. Vanguard Lifestrategy Moderate | Voya Multi-manager vs. Growth Strategy Fund |
| Voya Global vs. Locorr Market Trend | Voya Global vs. Artisan Developing World | Voya Global vs. Alphacentric Hedged Market | Voya Global vs. Aqr Sustainable Long Short |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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