Correlation Between Voya Large-cap and Osterweis Strategic
Can any of the company-specific risk be diversified away by investing in both Voya Large-cap and Osterweis Strategic 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 Osterweis Strategic 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 Osterweis Strategic Income, you can compare the effects of market volatilities on Voya Large-cap and Osterweis Strategic 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 Osterweis Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large-cap and Osterweis Strategic.
Diversification Opportunities for Voya Large-cap and Osterweis Strategic
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Osterweis is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap Growth and Osterweis Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Strategic 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 Osterweis Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Strategic has no effect on the direction of Voya Large-cap i.e., Voya Large-cap and Osterweis Strategic go up and down completely randomly.
Pair Corralation between Voya Large-cap and Osterweis Strategic
Assuming the 90 days horizon Voya Large Cap Growth is expected to generate 8.62 times more return on investment than Osterweis Strategic. However, Voya Large-cap is 8.62 times more volatile than Osterweis Strategic Income. It trades about 0.06 of its potential returns per unit of risk. Osterweis Strategic Income is currently generating about 0.23 per unit of risk. If you would invest 4,263 in Voya Large Cap Growth on August 29, 2024 and sell it today you would earn a total of 1,912 from holding Voya Large Cap Growth or generate 44.85% 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. Osterweis Strategic Income
Performance |
| Timeline |
| Voya Large Cap |
| Osterweis Strategic |
Voya Large-cap and Osterweis Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large-cap and Osterweis Strategic
The main advantage of trading using opposite Voya Large-cap and Osterweis Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large-cap position performs unexpectedly, Osterweis Strategic 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 Osterweis Strategic will offset losses from the drop in Osterweis Strategic'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 |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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