Correlation Between NYSE Composite and Voya Solution
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Voya Solution 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 Solution 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 Solution Income, you can compare the effects of market volatilities on NYSE Composite and Voya Solution 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 Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Voya Solution.
Diversification Opportunities for NYSE Composite and Voya Solution
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and Voya is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Voya Solution Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Income 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 Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Income has no effect on the direction of NYSE Composite i.e., NYSE Composite and Voya Solution go up and down completely randomly.
Pair Corralation between NYSE Composite and Voya Solution
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.83 times more return on investment than Voya Solution. However, NYSE Composite is 1.83 times more volatile than Voya Solution Income. It trades about 0.15 of its potential returns per unit of risk. Voya Solution Income is currently generating about 0.14 per unit of risk. If you would invest 1,507,091 in NYSE Composite on August 29, 2024 and sell it today you would earn a total of 513,891 from holding NYSE Composite or generate 34.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Voya Solution Income
Performance |
| Timeline |
NYSE Composite and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Voya Solution Income
Pair trading matchups for Voya Solution
Pair Trading with NYSE Composite and Voya Solution
The main advantage of trading using opposite NYSE Composite and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| Voya Solution vs. Blackrock High Yield | Voya Solution vs. Calvert High Yield | Voya Solution vs. Dunham High Yield | Voya Solution vs. Siit High Yield |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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