Correlation Between NYSE Composite and Voya Target
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Voya Target 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 Target Retirement, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Voya Target.
Diversification Opportunities for NYSE Composite and Voya Target
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Voya is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 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 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 NYSE Composite i.e., NYSE Composite and Voya Target go up and down completely randomly.
Pair Corralation between NYSE Composite and Voya Target
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.93 times more return on investment than Voya Target. However, NYSE Composite is 1.07 times less risky than Voya Target. It trades about 0.15 of its potential returns per unit of risk. Voya Target Retirement is currently generating about 0.13 per unit of risk. If you would invest 1,772,518 in NYSE Composite on November 3, 2024 and sell it today you would earn a total of 227,364 from holding NYSE Composite or generate 12.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Voya Target Retirement
Performance |
| Timeline |
NYSE Composite and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Voya Target Retirement
Pair trading matchups for Voya Target
Pair Trading with NYSE Composite and Voya Target
The main advantage of trading using opposite NYSE Composite and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Palomar Holdings | NYSE Composite vs. The Peoples Insurance | NYSE Composite vs. Radian Group | NYSE Composite vs. Nascent Wine |
| Voya Target vs. Artisan High Income | Voya Target vs. Gmo Emerging Ntry | Voya Target vs. Versatile Bond Portfolio | Voya Target 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |