Correlation Between Voya Large-cap and Emerald Growth
Can any of the company-specific risk be diversified away by investing in both Voya Large-cap and Emerald Growth 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 Emerald Growth 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 Emerald Growth Fund, you can compare the effects of market volatilities on Voya Large-cap and Emerald Growth 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 Emerald Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large-cap and Emerald Growth.
Diversification Opportunities for Voya Large-cap and Emerald Growth
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Emerald is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap Growth and Emerald Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Growth 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 Emerald Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Growth has no effect on the direction of Voya Large-cap i.e., Voya Large-cap and Emerald Growth go up and down completely randomly.
Pair Corralation between Voya Large-cap and Emerald Growth
Assuming the 90 days horizon Voya Large Cap Growth is expected to generate 0.81 times more return on investment than Emerald Growth. However, Voya Large Cap Growth is 1.24 times less risky than Emerald Growth. It trades about 0.1 of its potential returns per unit of risk. Emerald Growth Fund is currently generating about 0.08 per unit of risk. If you would invest 4,956 in Voya Large Cap Growth on August 29, 2024 and sell it today you would earn a total of 1,272 from holding Voya Large Cap Growth or generate 25.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.52% |
| Values | Daily Returns |
Voya Large Cap Growth vs. Emerald Growth Fund
Performance |
| Timeline |
| Voya Large Cap |
| Emerald Growth |
Voya Large-cap and Emerald Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large-cap and Emerald Growth
The main advantage of trading using opposite Voya Large-cap and Emerald Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large-cap position performs unexpectedly, Emerald Growth 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 Emerald Growth will offset losses from the drop in Emerald Growth's 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 |
| Emerald Growth vs. Growth Fund Of | Emerald Growth vs. Qs Small Capitalization | Emerald Growth vs. Small Midcap Dividend Income | Emerald Growth vs. Ab Centrated Growth |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |