Correlation Between Ab Small and Voya Index
Can any of the company-specific risk be diversified away by investing in both Ab Small and Voya Index 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 Ab Small and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Small Cap and Voya Index Plus, you can compare the effects of market volatilities on Ab Small and Voya Index 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 Ab Small with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Voya Index.
Diversification Opportunities for Ab Small and Voya Index
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between QUAZX and Voya is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus and Ab Small 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 Ab Small Cap are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of Ab Small i.e., Ab Small and Voya Index go up and down completely randomly.
Pair Corralation between Ab Small and Voya Index
Assuming the 90 days horizon Ab Small Cap is expected to under-perform the Voya Index. In addition to that, Ab Small is 1.51 times more volatile than Voya Index Plus. It trades about -0.05 of its total potential returns per unit of risk. Voya Index Plus is currently generating about -0.01 per unit of volatility. If you would invest 3,111 in Voya Index Plus on November 3, 2024 and sell it today you would lose (17.00) from holding Voya Index Plus or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Small Cap vs. Voya Index Plus
Performance |
| Timeline |
| Ab Small Cap |
| Voya Index Plus |
Ab Small and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Voya Index
The main advantage of trading using opposite Ab Small and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| Ab Small vs. Angel Oak Financial | Ab Small vs. Schwab Government Money | Ab Small vs. Financial Industries Fund | Ab Small vs. Financials Ultrasector Profund |
| Voya Index vs. Praxis Genesis Growth | Voya Index vs. The Hartford Growth | Voya Index vs. T Rowe Price | Voya Index vs. Stringer Growth Fund |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |