Correlation Between Nasdaq 100 and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Voya Solution 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 Nasdaq 100 and Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Voya Solution Aggressive, you can compare the effects of market volatilities on Nasdaq 100 and Voya Solution 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 Nasdaq 100 with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Voya Solution.
Diversification Opportunities for Nasdaq 100 and Voya Solution
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nasdaq and Voya is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Voya Solution Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Aggressive and Nasdaq 100 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 Nasdaq 100 2x Strategy are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Aggressive has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Voya Solution go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Voya Solution
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 2.97 times more return on investment than Voya Solution. However, Nasdaq 100 is 2.97 times more volatile than Voya Solution Aggressive. It trades about 0.1 of its potential returns per unit of risk. Voya Solution Aggressive is currently generating about 0.08 per unit of risk. If you would invest 16,007 in Nasdaq 100 2x Strategy on September 4, 2024 and sell it today you would earn a total of 26,896 from holding Nasdaq 100 2x Strategy or generate 168.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Voya Solution Aggressive
Performance |
| Timeline |
| Nasdaq 100 2x |
| Voya Solution Aggressive |
Nasdaq 100 and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Voya Solution
The main advantage of trading using opposite Nasdaq 100 and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.| Nasdaq 100 vs. L Abbett Growth | Nasdaq 100 vs. Pace Smallmedium Growth | Nasdaq 100 vs. William Blair Growth | Nasdaq 100 vs. Artisan Small Cap |
| Voya Solution vs. Angel Oak Multi Strategy | Voya Solution vs. Nasdaq 100 2x Strategy | Voya Solution vs. Black Oak Emerging | Voya Solution vs. Commodities Strategy 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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