Correlation Between NYSE Composite and Voya Global
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Voya Global Equity, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Voya Global.
Diversification Opportunities for NYSE Composite and Voya Global
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Voya is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Voya Global go up and down completely randomly.
Pair Corralation between NYSE Composite and Voya Global
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.74 times more return on investment than Voya Global. However, NYSE Composite is 1.35 times less risky than Voya Global. It trades about 0.18 of its potential returns per unit of risk. Voya Global Equity is currently generating about 0.04 per unit of risk. If you would invest 1,959,424 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 52,921 from holding NYSE Composite or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Voya Global Equity
Performance |
| Timeline |
NYSE Composite and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Voya Global Equity
Pair trading matchups for Voya Global
Pair Trading with NYSE Composite and Voya Global
The main advantage of trading using opposite NYSE Composite and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Voya Global vs. MFS Investment Grade | Voya Global vs. Eaton Vance National | Voya Global vs. Blackrock Muniyield Quality | Voya Global vs. Munivest Fund |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |