Correlation Between Voya Multi and Voya Vacs
Can any of the company-specific risk be diversified away by investing in both Voya Multi and Voya Vacs 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 Vacs 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 Vacs Index, you can compare the effects of market volatilities on Voya Multi and Voya Vacs 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 Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi and Voya Vacs.
Diversification Opportunities for Voya Multi and Voya Vacs
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Voya is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Voya Multi Manager Internation and Voya Vacs Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Index 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 Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Index has no effect on the direction of Voya Multi i.e., Voya Multi and Voya Vacs go up and down completely randomly.
Pair Corralation between Voya Multi and Voya Vacs
Assuming the 90 days horizon Voya Multi is expected to generate 1.11 times less return on investment than Voya Vacs. In addition to that, Voya Multi is 1.0 times more volatile than Voya Vacs Index. It trades about 0.04 of its total potential returns per unit of risk. Voya Vacs Index is currently generating about 0.04 per unit of volatility. If you would invest 1,027 in Voya Vacs Index on September 12, 2024 and sell it today you would earn a total of 111.00 from holding Voya Vacs Index or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Multi Manager Internation vs. Voya Vacs Index
Performance |
| Timeline |
| Voya Multi Manager |
| Voya Vacs Index |
Voya Multi and Voya Vacs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Multi and Voya Vacs
The main advantage of trading using opposite Voya Multi and Voya Vacs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi position performs unexpectedly, Voya Vacs 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 Vacs will offset losses from the drop in Voya Vacs' long position.| Voya Multi vs. SCOR PK | Voya Multi vs. Morningstar Unconstrained Allocation | Voya Multi vs. Thrivent High Yield | Voya Multi vs. Via Renewables |
| Voya Vacs vs. SCOR PK | Voya Vacs vs. Morningstar Unconstrained Allocation | Voya Vacs vs. Via Renewables | Voya Vacs vs. Bondbloxx ETF Trust |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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