Correlation Between Voya Equity and Washington Mutual
Can any of the company-specific risk be diversified away by investing in both Voya Equity and Washington Mutual 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 Equity and Washington Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Equity Trust and Washington Mutual Investors, you can compare the effects of market volatilities on Voya Equity and Washington Mutual 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 Equity with a short position of Washington Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Equity and Washington Mutual.
Diversification Opportunities for Voya Equity and Washington Mutual
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voya and Washington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Equity Trust and Washington Mutual Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Mutual and Voya Equity 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 Equity Trust are associated (or correlated) with Washington Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Washington Mutual has no effect on the direction of Voya Equity i.e., Voya Equity and Washington Mutual go up and down completely randomly.
Pair Corralation between Voya Equity and Washington Mutual
If you would invest 6,323 in Washington Mutual Investors on November 28, 2024 and sell it today you would earn a total of 31.00 from holding Washington Mutual Investors or generate 0.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Voya Equity Trust vs. Washington Mutual Investors
Performance |
Timeline |
Voya Equity Trust |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Washington Mutual |
Voya Equity and Washington Mutual Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya Equity and Washington Mutual
The main advantage of trading using opposite Voya Equity and Washington Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Equity position performs unexpectedly, Washington Mutual 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 Washington Mutual will offset losses from the drop in Washington Mutual's long position.Voya Equity vs. Small Pany Growth | Voya Equity vs. Touchstone Sands Capital | Voya Equity vs. Ab Centrated International | Voya Equity vs. The Hartford International |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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