Correlation Between Voya High and Voya Multi
Can any of the company-specific risk be diversified away by investing in both Voya High and Voya Multi 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 Voya Multi 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 Voya Multi Manager International, you can compare the effects of market volatilities on Voya High and Voya Multi 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 Voya Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Voya Multi.
Diversification Opportunities for Voya High and Voya Multi
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Voya is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Voya Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Voya High i.e., Voya High and Voya Multi go up and down completely randomly.
Pair Corralation between Voya High and Voya Multi
If you would invest 981.00 in Voya Multi Manager International on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Voya Multi Manager International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Voya Multi Manager Internation
Performance |
| Timeline |
| Voya High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Voya Multi Manager |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Voya High and Voya Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Voya Multi
The main advantage of trading using opposite Voya High and Voya Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Voya Multi 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 Voya Multi will offset losses from the drop in Voya Multi's long position.| Voya High vs. Voya Investors Trust | Voya High vs. Voya Vacs Index | Voya High vs. Voya Vacs Index | Voya High vs. Vy T Rowe |
| Voya Multi vs. Templeton Emerging Markets | Voya Multi vs. Commodities Strategy Fund | Voya Multi vs. Jpmorgan Emerging Markets | Voya Multi vs. Transamerica Emerging Markets |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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