Correlation Between Voya Financial and MINCO SILVER
Can any of the company-specific risk be diversified away by investing in both Voya Financial and MINCO SILVER 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 MINCO SILVER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Financial and MINCO SILVER, you can compare the effects of market volatilities on Voya Financial and MINCO SILVER 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 MINCO SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Financial and MINCO SILVER.
Diversification Opportunities for Voya Financial and MINCO SILVER
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and MINCO is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Voya Financial and MINCO SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINCO SILVER 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 MINCO SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINCO SILVER has no effect on the direction of Voya Financial i.e., Voya Financial and MINCO SILVER go up and down completely randomly.
Pair Corralation between Voya Financial and MINCO SILVER
Assuming the 90 days horizon Voya Financial is expected to under-perform the MINCO SILVER. But the stock apears to be less risky and, when comparing its historical volatility, Voya Financial is 1.67 times less risky than MINCO SILVER. The stock trades about -0.37 of its potential returns per unit of risk. The MINCO SILVER is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 13.00 in MINCO SILVER on September 24, 2024 and sell it today you would lose (1.00) from holding MINCO SILVER or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Financial vs. MINCO SILVER
Performance |
| Timeline |
| Voya Financial |
| MINCO SILVER |
Voya Financial and MINCO SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Financial and MINCO SILVER
The main advantage of trading using opposite Voya Financial and MINCO SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Financial position performs unexpectedly, MINCO SILVER 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 MINCO SILVER will offset losses from the drop in MINCO SILVER's long position.| Voya Financial vs. MINCO SILVER | Voya Financial vs. Ameriprise Financial | Voya Financial vs. Tradegate AG Wertpapierhandelsbank | Voya Financial vs. Evolution Mining Limited |
| MINCO SILVER vs. Apollo Investment Corp | MINCO SILVER vs. CDL INVESTMENT | MINCO SILVER vs. PennyMac Mortgage Investment | MINCO SILVER vs. Gladstone Investment |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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