Correlation Between Needham Aggressive and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Voya Multi-manager 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 Needham Aggressive and Voya Multi-manager into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Voya Multi Manager International, you can compare the effects of market volatilities on Needham Aggressive and Voya Multi-manager 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 Needham Aggressive with a short position of Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Voya Multi-manager.
Diversification Opportunities for Needham Aggressive and Voya Multi-manager
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Needham and Voya is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Voya Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Needham Aggressive and Voya Multi-manager
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 2.06 times more return on investment than Voya Multi-manager. However, Needham Aggressive is 2.06 times more volatile than Voya Multi Manager International. It trades about -0.04 of its potential returns per unit of risk. Voya Multi Manager International is currently generating about -0.25 per unit of risk. If you would invest 5,151 in Needham Aggressive Growth on October 10, 2024 and sell it today you would lose (67.00) from holding Needham Aggressive Growth or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Voya Multi Manager Internation
Performance |
| Timeline |
| Needham Aggressive Growth |
| Voya Multi Manager |
Needham Aggressive and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Voya Multi-manager
The main advantage of trading using opposite Needham Aggressive and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Voya Multi-manager 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 Multi-manager will offset losses from the drop in Voya Multi-manager's long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Voya Multi-manager vs. Wilmington Trust Retirement | Voya Multi-manager vs. Qs Moderate Growth | Voya Multi-manager vs. Sierra E Retirement | Voya Multi-manager vs. College Retirement Equities |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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