Correlation Between Vy Goldman and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Vy Goldman and Growth Strategy 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 Vy Goldman and Growth Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vy Goldman Sachs and Growth Strategy Fund, you can compare the effects of market volatilities on Vy Goldman and Growth Strategy 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 Vy Goldman with a short position of Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy Goldman and Growth Strategy.
Diversification Opportunities for Vy Goldman and Growth Strategy
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VGSBX and Growth is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Vy Goldman Sachs and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy and Vy Goldman 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 Vy Goldman Sachs are associated (or correlated) with Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Vy Goldman i.e., Vy Goldman and Growth Strategy go up and down completely randomly.
Pair Corralation between Vy Goldman and Growth Strategy
Assuming the 90 days horizon Vy Goldman is expected to generate 2.81 times less return on investment than Growth Strategy. But when comparing it to its historical volatility, Vy Goldman Sachs is 1.17 times less risky than Growth Strategy. It trades about 0.14 of its potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,273 in Growth Strategy Fund on September 4, 2024 and sell it today you would earn a total of 43.00 from holding Growth Strategy Fund or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vy Goldman Sachs vs. Growth Strategy Fund
Performance |
| Timeline |
| Vy Goldman Sachs |
| Growth Strategy |
Vy Goldman and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vy Goldman and Growth Strategy
The main advantage of trading using opposite Vy Goldman and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Goldman position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Vy Goldman vs. Voya Bond Index | Vy Goldman vs. Voya Bond Index | Vy Goldman vs. Voya Limited Maturity | Vy Goldman vs. Voya Limited Maturity |
| Growth Strategy vs. Icon Natural Resources | Growth Strategy vs. Calvert Global Energy | Growth Strategy vs. Invesco Energy Fund | Growth Strategy vs. Jennison Natural Resources |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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