Correlation Between Simt Multi-asset and Voya Index
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset 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 Simt Multi-asset and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Inflation and Voya Index Plus, you can compare the effects of market volatilities on Simt Multi-asset 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 Simt Multi-asset with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Voya Index.
Diversification Opportunities for Simt Multi-asset and Voya Index
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Simt and Voya is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation 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 Simt Multi-asset 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 Simt Multi Asset Inflation 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 Simt Multi-asset i.e., Simt Multi-asset and Voya Index go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Voya Index
Assuming the 90 days horizon Simt Multi-asset is expected to generate 6.7 times less return on investment than Voya Index. But when comparing it to its historical volatility, Simt Multi Asset Inflation is 3.7 times less risky than Voya Index. It trades about 0.09 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,592 in Voya Index Plus on November 3, 2024 and sell it today you would earn a total of 457.00 from holding Voya Index Plus or generate 17.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Voya Index Plus
Performance |
| Timeline |
| Simt Multi Asset |
| Voya Index Plus |
Simt Multi-asset and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Voya Index
The main advantage of trading using opposite Simt Multi-asset and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset 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.| Simt Multi-asset vs. Doubleline Total Return | Simt Multi-asset vs. Siit High Yield | Simt Multi-asset vs. Angel Oak Financial | Simt Multi-asset vs. Touchstone Ultra Short |
| Voya Index vs. Pnc International Growth | Voya Index vs. L Abbett Growth | Voya Index vs. Growth Allocation Fund | Voya Index vs. Artisan Small Cap |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |