Correlation Between Voya Global and Voya Target
Can any of the company-specific risk be diversified away by investing in both Voya Global and Voya Target 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 Voya Target 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 Voya Target Retirement, you can compare the effects of market volatilities on Voya Global and Voya Target 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 Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Voya Target.
Diversification Opportunities for Voya Global and Voya Target
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Equity and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement 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 Voya Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of Voya Global i.e., Voya Global and Voya Target go up and down completely randomly.
Pair Corralation between Voya Global and Voya Target
Assuming the 90 days horizon Voya Global Equity is expected to generate 1.11 times more return on investment than Voya Target. However, Voya Global is 1.11 times more volatile than Voya Target Retirement. It trades about 0.17 of its potential returns per unit of risk. Voya Target Retirement is currently generating about 0.16 per unit of risk. If you would invest 3,749 in Voya Global Equity on September 4, 2024 and sell it today you would earn a total of 1,093 from holding Voya Global Equity or generate 29.15% 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. Voya Target Retirement
Performance |
| Timeline |
| Voya Global Equity |
| Voya Target Retirement |
Voya Global and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Voya Target
The main advantage of trading using opposite Voya Global and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Voya Target 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 Target will offset losses from the drop in Voya Target's long position.| Voya Global vs. Voya Bond Index | Voya Global vs. Voya Bond Index | Voya Global vs. Voya Limited Maturity | Voya Global vs. Voya Limited Maturity |
| Voya Target vs. Voya Bond Index | Voya Target vs. Voya Bond Index | Voya Target vs. Voya Limited Maturity | Voya Target vs. Voya Limited Maturity |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |