Correlation Between Voya Intermediate and Gold
Can any of the company-specific risk be diversified away by investing in both Voya Intermediate and Gold 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 Intermediate and Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Intermediate Bond and Gold And Precious, you can compare the effects of market volatilities on Voya Intermediate and Gold 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 Intermediate with a short position of Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Intermediate and Gold.
Diversification Opportunities for Voya Intermediate and Gold
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Voya and Gold is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious and Voya Intermediate 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 Intermediate Bond are associated (or correlated) with Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of Voya Intermediate i.e., Voya Intermediate and Gold go up and down completely randomly.
Pair Corralation between Voya Intermediate and Gold
Assuming the 90 days horizon Voya Intermediate is expected to generate 1.69 times less return on investment than Gold. But when comparing it to its historical volatility, Voya Intermediate Bond is 5.29 times less risky than Gold. It trades about 0.14 of its potential returns per unit of risk. Gold And Precious is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 964.00 in Gold And Precious on September 12, 2024 and sell it today you would earn a total of 320.00 from holding Gold And Precious or generate 33.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.06% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Gold And Precious
Performance |
| Timeline |
| Voya Intermediate Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gold And Precious |
Voya Intermediate and Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Intermediate and Gold
The main advantage of trading using opposite Voya Intermediate and Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Intermediate position performs unexpectedly, Gold 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 Gold will offset losses from the drop in Gold's long position.| Voya Intermediate vs. Aqr Large Cap | Voya Intermediate vs. Fidelity Series 1000 | Voya Intermediate vs. Qs Large Cap | Voya Intermediate vs. Touchstone Large Cap |
| Gold vs. Artisan Thematic Fund | Gold vs. Auer Growth Fund | Gold vs. Balanced Fund Investor | Gold vs. Nasdaq 100 Index Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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