Correlation Between Nasdaq-100(r) and Voya Investors
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100(r) and Voya Investors 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(r) and Voya Investors 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 Investors Trust, you can compare the effects of market volatilities on Nasdaq-100(r) and Voya Investors 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(r) with a short position of Voya Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100(r) and Voya Investors.
Diversification Opportunities for Nasdaq-100(r) and Voya Investors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq-100(r) and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Voya Investors Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Investors Trust and Nasdaq-100(r) 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 Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Investors Trust has no effect on the direction of Nasdaq-100(r) i.e., Nasdaq-100(r) and Voya Investors go up and down completely randomly.
Pair Corralation between Nasdaq-100(r) and Voya Investors
If you would invest 100.00 in Voya Investors Trust on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Voya Investors Trust or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Voya Investors Trust
Performance |
| Timeline |
| Nasdaq 100 2x |
| Voya Investors Trust |
Nasdaq-100(r) and Voya Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100(r) and Voya Investors
The main advantage of trading using opposite Nasdaq-100(r) and Voya Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100(r) position performs unexpectedly, Voya Investors 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 Investors will offset losses from the drop in Voya Investors' long position.| Nasdaq-100(r) vs. California Municipal Portfolio | Nasdaq-100(r) vs. Aig Government Money | Nasdaq-100(r) vs. Dreyfus Municipal Bond | Nasdaq-100(r) vs. Lord Abbett Intermediate |
| Voya Investors vs. Pace Municipal Fixed | Voya Investors vs. Georgia Tax Free Bond | Voya Investors vs. Artisan High Income | Voya Investors vs. Pioneer Amt Free Municipal |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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