Correlation Between Dow 2x and Voya Target
Can any of the company-specific risk be diversified away by investing in both Dow 2x and Voya Target 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 Dow 2x and Voya Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow 2x Strategy and Voya Target Retirement, you can compare the effects of market volatilities on Dow 2x and Voya Target 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 Dow 2x with a short position of Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow 2x and Voya Target.
Diversification Opportunities for Dow 2x and Voya Target
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dow and Voya is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dow 2x Strategy and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement and Dow 2x 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 Dow 2x Strategy are associated (or correlated) with Voya Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of Dow 2x i.e., Dow 2x and Voya Target go up and down completely randomly.
Pair Corralation between Dow 2x and Voya Target
Assuming the 90 days horizon Dow 2x Strategy is expected to generate 2.58 times more return on investment than Voya Target. However, Dow 2x is 2.58 times more volatile than Voya Target Retirement. It trades about 0.11 of its potential returns per unit of risk. Voya Target Retirement is currently generating about 0.07 per unit of risk. If you would invest 16,637 in Dow 2x Strategy on October 19, 2024 and sell it today you would earn a total of 544.00 from holding Dow 2x Strategy or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow 2x Strategy vs. Voya Target Retirement
Performance |
| Timeline |
| Dow 2x Strategy |
| Voya Target Retirement |
Dow 2x and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dow 2x and Voya Target
The main advantage of trading using opposite Dow 2x and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow 2x position performs unexpectedly, Voya Target 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 Target will offset losses from the drop in Voya Target's long position.| Dow 2x vs. Sp 500 2x | Dow 2x vs. Inverse Dow 2x | Dow 2x vs. Nasdaq 100 2x Strategy | Dow 2x vs. Russell 2000 2x |
| Voya Target vs. Dow 2x Strategy | Voya Target vs. Virtus Multi Strategy Target | Voya Target vs. Mid Cap 15x Strategy | Voya Target vs. Franklin Emerging Market |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |