Correlation Between Simt Multi-asset and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset and Voya Solution 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 Solution 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 Solution Conservative, you can compare the effects of market volatilities on Simt Multi-asset and Voya Solution 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 Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Voya Solution.
Diversification Opportunities for Simt Multi-asset and Voya Solution
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Simt and Voya is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation and Voya Solution Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Conser 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 Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Conser has no effect on the direction of Simt Multi-asset i.e., Simt Multi-asset and Voya Solution go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Voya Solution
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to generate 0.96 times more return on investment than Voya Solution. However, Simt Multi Asset Inflation is 1.04 times less risky than Voya Solution. It trades about 0.35 of its potential returns per unit of risk. Voya Solution Conservative is currently generating about 0.23 per unit of risk. If you would invest 768.00 in Simt Multi Asset Inflation on November 7, 2024 and sell it today you would earn a total of 15.00 from holding Simt Multi Asset Inflation or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Voya Solution Conservative
Performance |
| Timeline |
| Simt Multi Asset |
| Voya Solution Conser |
Simt Multi-asset and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Voya Solution
The main advantage of trading using opposite Simt Multi-asset and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.| Simt Multi-asset vs. Old Westbury Short Term | Simt Multi-asset vs. Western Asset Short | Simt Multi-asset vs. Aqr Equity Market | Simt Multi-asset vs. Siit Emerging Markets |
| Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Limited Maturity | Voya Solution vs. Voya Limited Maturity |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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