Correlation Between Voya Large-cap and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Voya Large-cap and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Voya Large-cap and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large-cap and Dow Jones.
Diversification Opportunities for Voya Large-cap and Dow Jones
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Dow is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap Growth and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Voya Large-cap i.e., Voya Large-cap and Dow Jones go up and down completely randomly.
Pair Corralation between Voya Large-cap and Dow Jones
Assuming the 90 days horizon Voya Large-cap is expected to generate 1.2 times less return on investment than Dow Jones. In addition to that, Voya Large-cap is 1.2 times more volatile than Dow Jones Industrial. It trades about 0.18 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Large Cap Growth vs. Dow Jones Industrial
Performance |
| Timeline |
Voya Large-cap and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Voya Large Cap Growth
Pair trading matchups for Voya Large-cap
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Voya Large-cap and Dow Jones
The main advantage of trading using opposite Voya Large-cap and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large-cap position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Voya Large-cap vs. Science Technology Fund | Voya Large-cap vs. Invesco Technology Fund | Voya Large-cap vs. Goldman Sachs Technology | Voya Large-cap vs. Dreyfus Technology Growth |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |