Correlation Between Summit Global and Voya High
Can any of the company-specific risk be diversified away by investing in both Summit Global and Voya High 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 Summit Global and Voya High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Global Investments and Voya High Yield, you can compare the effects of market volatilities on Summit Global and Voya High 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 Summit Global with a short position of Voya High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Voya High.
Diversification Opportunities for Summit Global and Voya High
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Summit and Voya is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments and Voya High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya High Yield and Summit Global 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 Summit Global Investments are associated (or correlated) with Voya High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya High Yield has no effect on the direction of Summit Global i.e., Summit Global and Voya High go up and down completely randomly.
Pair Corralation between Summit Global and Voya High
If you would invest 697.00 in Voya High Yield on September 14, 2024 and sell it today you would earn a total of 4.00 from holding Voya High Yield or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Summit Global Investments vs. Voya High Yield
Performance |
| Timeline |
| Summit Global Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Voya High Yield |
Summit Global and Voya High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Global and Voya High
The main advantage of trading using opposite Summit Global and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Global position performs unexpectedly, Voya High 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 High will offset losses from the drop in Voya High's long position.| Summit Global vs. Ambrus Core Bond | Summit Global vs. T Rowe Price | Summit Global vs. Doubleline Yield Opportunities | Summit Global vs. Ishares Municipal Bond |
| Voya High vs. Bbh Intermediate Municipal | Voya High vs. Gamco Global Telecommunications | Voya High vs. Franklin High Yield | Voya High vs. T Rowe Price |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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