Correlation Between Extended Market and Voya Russia
Can any of the company-specific risk be diversified away by investing in both Extended Market and Voya Russia 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 Extended Market and Voya Russia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Extended Market Index and Voya Russia Fund, you can compare the effects of market volatilities on Extended Market and Voya Russia 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 Extended Market with a short position of Voya Russia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Extended Market and Voya Russia.
Diversification Opportunities for Extended Market and Voya Russia
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Extended and Voya is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Extended Market Index and Voya Russia Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Russia Fund and Extended Market 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 Extended Market Index are associated (or correlated) with Voya Russia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Russia Fund has no effect on the direction of Extended Market i.e., Extended Market and Voya Russia go up and down completely randomly.
Pair Corralation between Extended Market and Voya Russia
If you would invest 2,043 in Extended Market Index on September 12, 2024 and sell it today you would earn a total of 423.00 from holding Extended Market Index or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Extended Market Index vs. Voya Russia Fund
Performance |
| Timeline |
| Extended Market Index |
| Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Extended Market and Voya Russia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Extended Market and Voya Russia
The main advantage of trading using opposite Extended Market and Voya Russia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Extended Market position performs unexpectedly, Voya Russia 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 Russia will offset losses from the drop in Voya Russia's long position.| Extended Market vs. Vanguard Mid Cap Index | Extended Market vs. Vanguard Mid Cap Index | Extended Market vs. Vanguard Mid Cap Index | Extended Market vs. Vanguard Mid Cap Index |
| Voya Russia vs. Ep Emerging Markets | Voya Russia vs. Barings Emerging Markets | Voya Russia vs. Ab All Market | Voya Russia vs. Extended Market Index |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |