Correlation Between Voya Financial and NextPoint Financial
Can any of the company-specific risk be diversified away by investing in both Voya Financial and NextPoint Financial 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 Financial and NextPoint Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Financial and NextPoint Financial, you can compare the effects of market volatilities on Voya Financial and NextPoint Financial 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 Financial with a short position of NextPoint Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Financial and NextPoint Financial.
Diversification Opportunities for Voya Financial and NextPoint Financial
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and NextPoint is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Voya Financial and NextPoint Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextPoint Financial and Voya Financial 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 Financial are associated (or correlated) with NextPoint Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextPoint Financial has no effect on the direction of Voya Financial i.e., Voya Financial and NextPoint Financial go up and down completely randomly.
Pair Corralation between Voya Financial and NextPoint Financial
If you would invest 2,368 in Voya Financial on November 4, 2024 and sell it today you would earn a total of 48.00 from holding Voya Financial or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Voya Financial vs. NextPoint Financial
Performance |
| Timeline |
| Voya Financial |
| NextPoint Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Voya Financial and NextPoint Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Financial and NextPoint Financial
The main advantage of trading using opposite Voya Financial and NextPoint Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Financial position performs unexpectedly, NextPoint Financial 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 NextPoint Financial will offset losses from the drop in NextPoint Financial's long position.| Voya Financial vs. Lendingtree | Voya Financial vs. B Riley Financial | Voya Financial vs. Voya Financial | Voya Financial vs. Athene Holding |
| NextPoint Financial vs. B Riley Financial | NextPoint Financial vs. B Riley Financial | NextPoint Financial vs. Lendingtree | NextPoint Financial vs. Voya Financial |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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