Correlation Between Voya Financial and CDN IMPERIAL
Can any of the company-specific risk be diversified away by investing in both Voya Financial and CDN IMPERIAL 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 Voya Financial and CDN IMPERIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Financial and CDN IMPERIAL BANK, you can compare the effects of market volatilities on Voya Financial and CDN IMPERIAL 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 Voya Financial with a short position of CDN IMPERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Financial and CDN IMPERIAL.
Diversification Opportunities for Voya Financial and CDN IMPERIAL
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Voya and CDN is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Voya Financial and CDN IMPERIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN IMPERIAL BANK and Voya Financial 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 Voya Financial are associated (or correlated) with CDN IMPERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN IMPERIAL BANK has no effect on the direction of Voya Financial i.e., Voya Financial and CDN IMPERIAL go up and down completely randomly.
Pair Corralation between Voya Financial and CDN IMPERIAL
Assuming the 90 days horizon Voya Financial is expected to generate 1.1 times more return on investment than CDN IMPERIAL. However, Voya Financial is 1.1 times more volatile than CDN IMPERIAL BANK. It trades about 0.01 of its potential returns per unit of risk. CDN IMPERIAL BANK is currently generating about -0.06 per unit of risk. If you would invest 6,550 in Voya Financial on October 15, 2024 and sell it today you would earn a total of 0.00 from holding Voya Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Financial vs. CDN IMPERIAL BANK
Performance |
| Timeline |
| Voya Financial |
| CDN IMPERIAL BANK |
Voya Financial and CDN IMPERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Financial and CDN IMPERIAL
The main advantage of trading using opposite Voya Financial and CDN IMPERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Financial position performs unexpectedly, CDN IMPERIAL 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 CDN IMPERIAL will offset losses from the drop in CDN IMPERIAL's long position.| Voya Financial vs. CANON MARKETING JP | Voya Financial vs. Tradeweb Markets | Voya Financial vs. TRADELINK ELECTRON | Voya Financial vs. MAG SILVER |
| CDN IMPERIAL vs. JAPAN TOBACCO UNSPADR12 | CDN IMPERIAL vs. Wizz Air Holdings | CDN IMPERIAL vs. WT OFFSHORE | CDN IMPERIAL vs. CHINA SOUTHN AIR H |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |