Correlation Between Voya Index and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Voya Index and Voya Retirement 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 Index and Voya Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Index Solution and Voya Retirement Growth, you can compare the effects of market volatilities on Voya Index and Voya Retirement 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 Index with a short position of Voya Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Voya Retirement.
Diversification Opportunities for Voya Index and Voya Retirement
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Voya is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Solution and Voya Retirement Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Growth and Voya Index 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 Index Solution are associated (or correlated) with Voya Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Growth has no effect on the direction of Voya Index i.e., Voya Index and Voya Retirement go up and down completely randomly.
Pair Corralation between Voya Index and Voya Retirement
Assuming the 90 days horizon Voya Index Solution is expected to generate 1.35 times more return on investment than Voya Retirement. However, Voya Index is 1.35 times more volatile than Voya Retirement Growth. It trades about 0.09 of its potential returns per unit of risk. Voya Retirement Growth is currently generating about 0.11 per unit of risk. If you would invest 1,158 in Voya Index Solution on September 13, 2024 and sell it today you would earn a total of 490.00 from holding Voya Index Solution or generate 42.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Index Solution vs. Voya Retirement Growth
Performance |
| Timeline |
| Voya Index Solution |
| Voya Retirement Growth |
Voya Index and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Voya Retirement
The main advantage of trading using opposite Voya Index and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Voya Retirement 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 Retirement will offset losses from the drop in Voya Retirement's long position.| Voya Index vs. Ashmore Emerging Markets | Voya Index vs. Siit Emerging Markets | Voya Index vs. Transamerica Emerging Markets | Voya Index vs. Mid Cap 15x Strategy |
| Voya Retirement vs. T Rowe Price | Voya Retirement vs. Doubleline Yield Opportunities | Voya Retirement vs. Touchstone Premium Yield | Voya Retirement vs. Multisector Bond Sma |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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