Correlation Between Old Westbury and Voya Global
Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Municipal and Voya Global Bond, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Voya Global.
Diversification Opportunities for Old Westbury and Voya Global
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Voya is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond and Old Westbury 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 Old Westbury Municipal 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 Bond has no effect on the direction of Old Westbury i.e., Old Westbury and Voya Global go up and down completely randomly.
Pair Corralation between Old Westbury and Voya Global
Assuming the 90 days horizon Old Westbury is expected to generate 1.25 times less return on investment than Voya Global. But when comparing it to its historical volatility, Old Westbury Municipal is 2.47 times less risky than Voya Global. It trades about 0.1 of its potential returns per unit of risk. Voya Global Bond is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 753.00 in Voya Global Bond on September 15, 2024 and sell it today you would earn a total of 39.00 from holding Voya Global Bond or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Municipal vs. Voya Global Bond
Performance |
| Timeline |
| Old Westbury Municipal |
| Voya Global Bond |
Old Westbury and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Voya Global
The main advantage of trading using opposite Old Westbury and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.| Old Westbury vs. Barings Global Floating | Old Westbury vs. Morningstar Global Income | Old Westbury vs. Commonwealth Global Fund | Old Westbury vs. Alliancebernstein Global High |
| Voya Global vs. Morningstar Municipal Bond | Voya Global vs. Old Westbury Municipal | Voya Global vs. Dws Government Money | Voya Global vs. T Rowe Price |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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