Correlation Between Voya Large-cap and The Arbitrage
Can any of the company-specific risk be diversified away by investing in both Voya Large-cap and The Arbitrage 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 Large-cap and The Arbitrage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Large Cap Growth and The Arbitrage Fund, you can compare the effects of market volatilities on Voya Large-cap and The Arbitrage 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 Large-cap with a short position of The Arbitrage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large-cap and The Arbitrage.
Diversification Opportunities for Voya Large-cap and The Arbitrage
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and The is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap Growth and The Arbitrage Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Arbitrage and Voya Large-cap 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 Large Cap Growth are associated (or correlated) with The Arbitrage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Arbitrage has no effect on the direction of Voya Large-cap i.e., Voya Large-cap and The Arbitrage go up and down completely randomly.
Pair Corralation between Voya Large-cap and The Arbitrage
Assuming the 90 days horizon Voya Large Cap Growth is expected to under-perform the The Arbitrage. In addition to that, Voya Large-cap is 7.74 times more volatile than The Arbitrage Fund. It trades about -0.17 of its total potential returns per unit of risk. The Arbitrage Fund is currently generating about 0.11 per unit of volatility. If you would invest 1,189 in The Arbitrage Fund on December 11, 2024 and sell it today you would earn a total of 11.00 from holding The Arbitrage Fund or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Large Cap Growth vs. The Arbitrage Fund
Performance |
| Timeline |
| Voya Large Cap |
| The Arbitrage |
Voya Large-cap and The Arbitrage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large-cap and The Arbitrage
The main advantage of trading using opposite Voya Large-cap and The Arbitrage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large-cap position performs unexpectedly, The Arbitrage 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 The Arbitrage will offset losses from the drop in The Arbitrage's long position.| Voya Large-cap vs. Jp Morgan Smartretirement | Voya Large-cap vs. Transamerica Cleartrack Retirement | Voya Large-cap vs. Target Retirement 2040 | Voya Large-cap vs. College Retirement Equities |
| The Arbitrage vs. Transamerica Cleartrack Retirement | The Arbitrage vs. Tiaa Cref Lifestyle Moderate | The Arbitrage vs. Target Retirement 2040 | The Arbitrage vs. Great West Moderately Servative |
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 Stocks Directory module to find actively traded stocks across global markets.
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