Correlation Between Voya Morgan and Voya Index
Can any of the company-specific risk be diversified away by investing in both Voya Morgan and Voya Index 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 Morgan and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Morgan Stanley and Voya Index Solution, you can compare the effects of market volatilities on Voya Morgan and Voya Index 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 Morgan with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Morgan and Voya Index.
Diversification Opportunities for Voya Morgan and Voya Index
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Voya Morgan Stanley and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Voya Morgan 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 Morgan Stanley are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Voya Morgan i.e., Voya Morgan and Voya Index go up and down completely randomly.
Pair Corralation between Voya Morgan and Voya Index
Assuming the 90 days horizon Voya Morgan is expected to generate 1.07 times less return on investment than Voya Index. In addition to that, Voya Morgan is 1.16 times more volatile than Voya Index Solution. It trades about 0.08 of its total potential returns per unit of risk. Voya Index Solution is currently generating about 0.09 per unit of volatility. If you would invest 937.00 in Voya Index Solution on August 30, 2024 and sell it today you would earn a total of 290.00 from holding Voya Index Solution or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Morgan Stanley vs. Voya Index Solution
Performance |
| Timeline |
| Voya Morgan Stanley |
| Voya Index Solution |
Voya Morgan and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Morgan and Voya Index
The main advantage of trading using opposite Voya Morgan and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Morgan position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| Voya Morgan vs. Goldman Sachs Technology | Voya Morgan vs. Science Technology Fund | Voya Morgan vs. Hennessy Technology Fund | Voya Morgan vs. Columbia Global Technology |
| Voya Index vs. Tekla Healthcare Opportunities | Voya Index vs. Alphacentric Lifesci Healthcare | Voya Index vs. Live Oak Health | Voya Index vs. Baron Health Care |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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