Correlation Between Voya High and Touchstone Small
Can any of the company-specific risk be diversified away by investing in both Voya High and Touchstone 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 Touchstone 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 Touchstone Small Cap, you can compare the effects of market volatilities on Voya High and Touchstone 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 Touchstone Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Touchstone Small.
Diversification Opportunities for Voya High and Touchstone Small
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Voya and Touchstone is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Touchstone Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone 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 Touchstone Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Small Cap has no effect on the direction of Voya High i.e., Voya High and Touchstone Small go up and down completely randomly.
Pair Corralation between Voya High and Touchstone Small
If you would invest 3,811 in Touchstone Small Cap on September 2, 2024 and sell it today you would earn a total of 366.00 from holding Touchstone Small Cap or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Voya High Yield vs. Touchstone Small Cap
Performance |
| Timeline |
| Voya High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Touchstone Small Cap |
Voya High and Touchstone Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Touchstone Small
The main advantage of trading using opposite Voya High and Touchstone Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Touchstone 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 Touchstone Small will offset losses from the drop in Touchstone Small's long position.| Voya High vs. Kinetics Small Cap | Voya High vs. Fisher Small Cap | Voya High vs. Small Pany Growth | Voya High vs. Touchstone Small Cap |
| Touchstone Small vs. Wisdomtree Siegel Global | Touchstone Small vs. Kinetics Global Fund | Touchstone Small vs. Rbc Global Opportunities | Touchstone Small vs. Us Global Investors |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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