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 Multi Asset, 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
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Voya is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Voya Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Multi 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 Multi 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 1.25 times more return on investment than Voya Global. However, NYSE Composite is 1.25 times more volatile than Voya Global Multi Asset. It trades about 0.08 of its potential returns per unit of risk. Voya Global Multi Asset is currently generating about 0.05 per unit of risk. If you would invest 1,529,105 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 491,877 from holding NYSE Composite or generate 32.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
NYSE Composite vs. Voya Global Multi Asset
Performance |
| Timeline |
NYSE Composite and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Voya Global Multi Asset
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. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
| Voya Global vs. Voya Bond Index | Voya Global vs. Voya Bond Index | Voya Global vs. Voya Limited Maturity | Voya Global 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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