Correlation Between Voya Large-cap and Vanguard Growth
Can any of the company-specific risk be diversified away by investing in both Voya Large-cap and Vanguard 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 Vanguard 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 Vanguard Growth Index, you can compare the effects of market volatilities on Voya Large-cap and Vanguard 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 Vanguard Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large-cap and Vanguard Growth.
Diversification Opportunities for Voya Large-cap and Vanguard Growth
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Voya and Vanguard is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap Growth and Vanguard Growth Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Growth Index 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 Vanguard Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Growth Index has no effect on the direction of Voya Large-cap i.e., Voya Large-cap and Vanguard Growth go up and down completely randomly.
Pair Corralation between Voya Large-cap and Vanguard Growth
Assuming the 90 days horizon Voya Large Cap Growth is expected to generate 1.05 times more return on investment than Vanguard Growth. However, Voya Large-cap is 1.05 times more volatile than Vanguard Growth Index. It trades about 0.14 of its potential returns per unit of risk. Vanguard Growth Index is currently generating about 0.13 per unit of risk. If you would invest 5,822 in Voya Large Cap Growth on August 30, 2024 and sell it today you would earn a total of 353.00 from holding Voya Large Cap Growth or generate 6.06% 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. Vanguard Growth Index
Performance |
| Timeline |
| Voya Large Cap |
| Vanguard Growth Index |
Voya Large-cap and Vanguard Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large-cap and Vanguard Growth
The main advantage of trading using opposite Voya Large-cap and Vanguard Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large-cap position performs unexpectedly, Vanguard 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 Vanguard Growth will offset losses from the drop in Vanguard Growth's long position.| Voya Large-cap vs. Dodge Global Stock | Voya Large-cap vs. Us Global Leaders | Voya Large-cap vs. Ms Global Fixed | Voya Large-cap vs. Commonwealth Global Fund |
| Vanguard Growth vs. Vanguard Value Index | Vanguard Growth vs. Vanguard Mid Cap Index | Vanguard Growth vs. Vanguard Small Cap Growth | Vanguard Growth vs. Vanguard 500 Index |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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