Correlation Between Voya High and Kinetics Small
Can any of the company-specific risk be diversified away by investing in both Voya High and Kinetics Small 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 High and Kinetics Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Kinetics Small Cap, you can compare the effects of market volatilities on Voya High and Kinetics Small 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 High with a short position of Kinetics Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Kinetics Small.
Diversification Opportunities for Voya High and Kinetics Small
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Voya and Kinetics is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Kinetics Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Small Cap and Voya High 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 High Yield are associated (or correlated) with Kinetics Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Small Cap has no effect on the direction of Voya High i.e., Voya High and Kinetics Small go up and down completely randomly.
Pair Corralation between Voya High and Kinetics Small
If you would invest 10,988 in Kinetics Small Cap on September 4, 2024 and sell it today you would earn a total of 10,890 from holding Kinetics Small Cap or generate 99.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Voya High Yield vs. Kinetics Small Cap
Performance |
| Timeline |
| Voya High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kinetics Small Cap |
Voya High and Kinetics Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Kinetics Small
The main advantage of trading using opposite Voya High and Kinetics Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Kinetics Small 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 Kinetics Small will offset losses from the drop in Kinetics Small's long position.| Voya High vs. Qs Growth Fund | Voya High vs. Commonwealth Global Fund | Voya High vs. Balanced Fund Investor | Voya High vs. Semiconductor Ultrasector Profund |
| Kinetics Small vs. Touchstone Small Cap | Kinetics Small vs. Small Pany Growth | Kinetics Small vs. Rbc Small Cap | Kinetics Small vs. Templeton Global Smaller |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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