Correlation Between Voya Large and Total Return
Can any of the company-specific risk be diversified away by investing in both Voya Large and Total Return 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 Voya Large and Total Return into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Large Cap Growth and Total Return Bond, you can compare the effects of market volatilities on Voya Large and Total Return 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 Voya Large with a short position of Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large and Total Return.
Diversification Opportunities for Voya Large and Total Return
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Total is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap Growth and Total Return Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return Bond and Voya Large 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 Voya Large Cap Growth are associated (or correlated) with Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return Bond has no effect on the direction of Voya Large i.e., Voya Large and Total Return go up and down completely randomly.
Pair Corralation between Voya Large and Total Return
Assuming the 90 days horizon Voya Large Cap Growth is expected to generate 2.55 times more return on investment than Total Return. However, Voya Large is 2.55 times more volatile than Total Return Bond. It trades about 0.12 of its potential returns per unit of risk. Total Return Bond is currently generating about 0.04 per unit of risk. If you would invest 3,370 in Voya Large Cap Growth on September 13, 2024 and sell it today you would earn a total of 3,011 from holding Voya Large Cap Growth or generate 89.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Large Cap Growth vs. Total Return Bond
Performance |
| Timeline |
| Voya Large Cap |
| Total Return Bond |
Voya Large and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large and Total Return
The main advantage of trading using opposite Voya Large and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return's long position.| Voya Large vs. Emerging Growth Fund | Voya Large vs. Total Return Bond | Voya Large vs. Amg Timessquare Mid | Voya Large vs. Eagle Small Cap |
| Total Return vs. Guggenheim Managed Futures | Total Return vs. Guidepath Managed Futures | Total Return vs. Deutsche Global Inflation | Total Return vs. Ab Bond Inflation |
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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