Correlation Between Stone Ridge and Voya Global
Can any of the company-specific risk be diversified away by investing in both Stone Ridge and Voya Global 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 Stone Ridge and Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Ridge Diversified and Voya Global Equity, you can compare the effects of market volatilities on Stone Ridge and Voya Global 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 Stone Ridge with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Ridge and Voya Global.
Diversification Opportunities for Stone Ridge and Voya Global
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stone and Voya is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Stone Ridge Diversified and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity and Stone Ridge 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 Stone Ridge Diversified are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Stone Ridge i.e., Stone Ridge and Voya Global go up and down completely randomly.
Pair Corralation between Stone Ridge and Voya Global
Assuming the 90 days horizon Stone Ridge Diversified is expected to under-perform the Voya Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Stone Ridge Diversified is 3.93 times less risky than Voya Global. The mutual fund trades about -0.08 of its potential returns per unit of risk. The Voya Global Equity is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,190 in Voya Global Equity on November 4, 2024 and sell it today you would earn a total of 122.00 from holding Voya Global Equity or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Ridge Diversified vs. Voya Global Equity
Performance |
| Timeline |
| Stone Ridge Diversified |
| Voya Global Equity |
Stone Ridge and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Ridge and Voya Global
The main advantage of trading using opposite Stone Ridge and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Ridge position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Stone Ridge vs. Ab Global Bond | Stone Ridge vs. Pnc Balanced Allocation | Stone Ridge vs. Scharf Global Opportunity | Stone Ridge vs. Barings Global Floating |
| Voya Global vs. Prudential High Yield | Voya Global vs. Buffalo High Yield | Voya Global vs. Pace High Yield | Voya Global vs. Artisan High Income |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |