Correlation Between Voya Securitized and Voya Us
Can any of the company-specific risk be diversified away by investing in both Voya Securitized and Voya Us 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 Securitized and Voya Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Securitized Credit and Voya Bond Index, you can compare the effects of market volatilities on Voya Securitized and Voya Us 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 Securitized with a short position of Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Securitized and Voya Us.
Diversification Opportunities for Voya Securitized and Voya Us
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and VOYA is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Voya Securitized Credit and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Voya Securitized 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 Securitized Credit are associated (or correlated) with Voya Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Voya Securitized i.e., Voya Securitized and Voya Us go up and down completely randomly.
Pair Corralation between Voya Securitized and Voya Us
Assuming the 90 days horizon Voya Securitized Credit is expected to generate 0.47 times more return on investment than Voya Us. However, Voya Securitized Credit is 2.13 times less risky than Voya Us. It trades about 0.17 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.03 per unit of risk. If you would invest 803.00 in Voya Securitized Credit on August 30, 2024 and sell it today you would earn a total of 147.00 from holding Voya Securitized Credit or generate 18.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Securitized Credit vs. Voya Bond Index
Performance |
| Timeline |
| Voya Securitized Credit |
| Voya Bond Index |
Voya Securitized and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Securitized and Voya Us
The main advantage of trading using opposite Voya Securitized and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Securitized position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.| Voya Securitized vs. Ab Global Risk | Voya Securitized vs. Kinetics Global Fund | Voya Securitized vs. Dreyfusstandish Global Fixed | Voya Securitized vs. Commonwealth Global Fund |
| Voya Us vs. Dreyfus Government Cash | Voya Us vs. Blackrock Government Bond | Voya Us vs. Federated Government Ultrashort | Voya Us vs. Us Government Securities |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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