Correlation Between Siit Emerging and Voya High
Can any of the company-specific risk be diversified away by investing in both Siit Emerging 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 Siit Emerging and Voya High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Voya High Yield, you can compare the effects of market volatilities on Siit Emerging 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 Siit Emerging with a short position of Voya High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Voya High.
Diversification Opportunities for Siit Emerging and Voya High
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Voya is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets 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 Siit Emerging 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 Siit Emerging Markets 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 Siit Emerging i.e., Siit Emerging and Voya High go up and down completely randomly.
Pair Corralation between Siit Emerging and Voya High
Assuming the 90 days horizon Siit Emerging Markets is expected to generate 2.34 times more return on investment than Voya High. However, Siit Emerging is 2.34 times more volatile than Voya High Yield. It trades about 0.32 of its potential returns per unit of risk. Voya High Yield is currently generating about 0.18 per unit of risk. If you would invest 828.00 in Siit Emerging Markets on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Siit Emerging Markets or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Voya High Yield
Performance |
| Timeline |
| Siit Emerging Markets |
| Voya High Yield |
Siit Emerging and Voya High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Voya High
The main advantage of trading using opposite Siit Emerging and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging 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.| Siit Emerging vs. Payden High Income | Siit Emerging vs. Siit High Yield | Siit Emerging vs. Virtus High Yield | Siit Emerging vs. Jpmorgan High Yield |
| Voya High vs. American Funds Conservative | Voya High vs. Madison Diversified Income | Voya High vs. Diversified Income Fund | Voya High vs. Delaware Limited Term Diversified |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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