Correlation Between Voya Financial and B Riley
Can any of the company-specific risk be diversified away by investing in both Voya Financial and B Riley 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 B Riley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Financial and B Riley Financial, you can compare the effects of market volatilities on Voya Financial and B Riley 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 B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Financial and B Riley.
Diversification Opportunities for Voya Financial and B Riley
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and RILY is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Voya Financial and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of Voya Financial i.e., Voya Financial and B Riley go up and down completely randomly.
Pair Corralation between Voya Financial and B Riley
Given the investment horizon of 90 days Voya Financial is expected to generate 0.23 times more return on investment than B Riley. However, Voya Financial is 4.4 times less risky than B Riley. It trades about 0.04 of its potential returns per unit of risk. B Riley Financial is currently generating about -0.01 per unit of risk. If you would invest 6,370 in Voya Financial on August 28, 2024 and sell it today you would earn a total of 1,921 from holding Voya Financial or generate 30.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Financial vs. B Riley Financial
Performance |
| Timeline |
| Voya Financial |
| B Riley Financial |
Voya Financial and B Riley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Financial and B Riley
The main advantage of trading using opposite Voya Financial and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Financial position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley's long position.| Voya Financial vs. Lendingtree | Voya Financial vs. Voya Financial | Voya Financial vs. B Riley Financial | Voya Financial vs. B Riley 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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