Correlation Between Voya Global and Enhanced Fixed
Can any of the company-specific risk be diversified away by investing in both Voya Global and Enhanced Fixed 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 Global and Enhanced Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Equity and Enhanced Fixed Income, you can compare the effects of market volatilities on Voya Global and Enhanced Fixed 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 Global with a short position of Enhanced Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Enhanced Fixed.
Diversification Opportunities for Voya Global and Enhanced Fixed
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Enhanced is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Equity and Enhanced Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enhanced Fixed Income and Voya Global 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 Global Equity are associated (or correlated) with Enhanced Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enhanced Fixed Income has no effect on the direction of Voya Global i.e., Voya Global and Enhanced Fixed go up and down completely randomly.
Pair Corralation between Voya Global and Enhanced Fixed
Assuming the 90 days horizon Voya Global Equity is expected to generate 2.25 times more return on investment than Enhanced Fixed. However, Voya Global is 2.25 times more volatile than Enhanced Fixed Income. It trades about 0.26 of its potential returns per unit of risk. Enhanced Fixed Income is currently generating about 0.19 per unit of risk. If you would invest 4,165 in Voya Global Equity on November 3, 2024 and sell it today you would earn a total of 147.00 from holding Voya Global Equity or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Global Equity vs. Enhanced Fixed Income
Performance |
| Timeline |
| Voya Global Equity |
| Enhanced Fixed Income |
Voya Global and Enhanced Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Enhanced Fixed
The main advantage of trading using opposite Voya Global and Enhanced Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Enhanced Fixed 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 Enhanced Fixed will offset losses from the drop in Enhanced Fixed's long position.| Voya Global vs. Dws Global Macro | Voya Global vs. Ab Global Bond | Voya Global vs. Commonwealth Global Fund | Voya Global vs. Aqr Global Macro |
| Enhanced Fixed vs. Barings High Yield | Enhanced Fixed vs. Rationalpier 88 Convertible | Enhanced Fixed vs. Ms Global Fixed | Enhanced Fixed vs. Multisector Bond Sma |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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