Correlation Between Siit High and Voya Index
Can any of the company-specific risk be diversified away by investing in both Siit High and Voya Index 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 High and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Voya Index Plus, you can compare the effects of market volatilities on Siit High and Voya Index 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 High with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Voya Index.
Diversification Opportunities for Siit High and Voya Index
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siit and Voya is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus and Siit High 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 High Yield are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of Siit High i.e., Siit High and Voya Index go up and down completely randomly.
Pair Corralation between Siit High and Voya Index
Assuming the 90 days horizon Siit High is expected to generate 1.01 times less return on investment than Voya Index. But when comparing it to its historical volatility, Siit High Yield is 4.11 times less risky than Voya Index. It trades about 0.13 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,897 in Voya Index Plus on November 28, 2024 and sell it today you would earn a total of 309.00 from holding Voya Index Plus or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Voya Index Plus
Performance |
| Timeline |
| Siit High Yield |
| Voya Index Plus |
Siit High and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Voya Index
The main advantage of trading using opposite Siit High and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| Siit High vs. Delaware Limited Term Diversified | Siit High vs. Harbor Diversified International | Siit High vs. Aqr Diversified Arbitrage | Siit High vs. Prudential Core Conservative |
| Voya Index vs. Investment Managers Series | Voya Index vs. Fidelity Advisor Gold | Voya Index vs. First Eagle Gold | Voya Index vs. Gold And Precious |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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