Correlation Between Voya Financial and Gold Road
Can any of the company-specific risk be diversified away by investing in both Voya Financial and Gold Road 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 Gold Road into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Financial and Gold Road Resources, you can compare the effects of market volatilities on Voya Financial and Gold Road 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 Gold Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Financial and Gold Road.
Diversification Opportunities for Voya Financial and Gold Road
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Voya and Gold is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Voya Financial and Gold Road Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Road Resources 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 Gold Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Road Resources has no effect on the direction of Voya Financial i.e., Voya Financial and Gold Road go up and down completely randomly.
Pair Corralation between Voya Financial and Gold Road
Assuming the 90 days horizon Voya Financial is expected to under-perform the Gold Road. In addition to that, Voya Financial is 1.05 times more volatile than Gold Road Resources. It trades about -0.33 of its total potential returns per unit of risk. Gold Road Resources is currently generating about 0.03 per unit of volatility. If you would invest 118.00 in Gold Road Resources on September 30, 2024 and sell it today you would earn a total of 1.00 from holding Gold Road Resources or generate 0.85% 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. Gold Road Resources
Performance |
| Timeline |
| Voya Financial |
| Gold Road Resources |
Voya Financial and Gold Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Financial and Gold Road
The main advantage of trading using opposite Voya Financial and Gold Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Financial position performs unexpectedly, Gold Road 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 Gold Road will offset losses from the drop in Gold Road's long position.| Voya Financial vs. Laureate Education | Voya Financial vs. LEGACY IRON ORE | Voya Financial vs. IDP EDUCATION LTD | Voya Financial vs. DeVry Education Group |
| Gold Road vs. DISTRICT METALS | Gold Road vs. CHIBA BANK | Gold Road vs. Chiba Bank | Gold Road vs. VIRG NATL BANKSH |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |