Correlation Between Index Plus and Voya Us
Can any of the company-specific risk be diversified away by investing in both Index Plus and Voya Us 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 Index Plus and Voya Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Index Plus Largecap and Voya Bond Index, you can compare the effects of market volatilities on Index Plus and Voya Us 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 Index Plus with a short position of Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Index Plus and Voya Us.
Diversification Opportunities for Index Plus and Voya Us
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Index and Voya is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Index Plus Largecap and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Index Plus 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 Index Plus Largecap are associated (or correlated) with Voya Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Index Plus i.e., Index Plus and Voya Us go up and down completely randomly.
Pair Corralation between Index Plus and Voya Us
Assuming the 90 days horizon Index Plus Largecap is expected to generate 2.18 times more return on investment than Voya Us. However, Index Plus is 2.18 times more volatile than Voya Bond Index. It trades about 0.11 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.02 per unit of risk. If you would invest 1,968 in Index Plus Largecap on September 3, 2024 and sell it today you would earn a total of 1,070 from holding Index Plus Largecap or generate 54.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Index Plus Largecap vs. Voya Bond Index
Performance |
| Timeline |
| Index Plus Largecap |
| Voya Bond Index |
Index Plus and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Index Plus and Voya Us
The main advantage of trading using opposite Index Plus and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Index Plus position performs unexpectedly, Voya Us 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 Voya Us will offset losses from the drop in Voya Us' long position.| Index Plus vs. Invesco Gold Special | Index Plus vs. Goldman Sachs Short | Index Plus vs. Fidelity Advisor Gold | Index Plus vs. Short Precious Metals |
| Voya Us vs. Angel Oak Ultrashort | Voya Us vs. Federated Short Term Income | Voya Us vs. Ab Select Longshort | Voya Us vs. Sterling Capital Short |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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