Correlation Between Voya Jpmorgan and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Voya Jpmorgan and Voya Multi-manager 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 Jpmorgan and Voya Multi-manager into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Jpmorgan Small and Voya Multi Manager Mid, you can compare the effects of market volatilities on Voya Jpmorgan and Voya Multi-manager 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 Jpmorgan with a short position of Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Jpmorgan and Voya Multi-manager.
Diversification Opportunities for Voya Jpmorgan and Voya Multi-manager
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Voya is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Voya Jpmorgan Small and Voya Multi Manager Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager and Voya Jpmorgan 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 Jpmorgan Small are associated (or correlated) with Voya Multi-manager. 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 Jpmorgan i.e., Voya Jpmorgan and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Voya Jpmorgan and Voya Multi-manager
Assuming the 90 days horizon Voya Jpmorgan Small is expected to generate 1.12 times more return on investment than Voya Multi-manager. However, Voya Jpmorgan is 1.12 times more volatile than Voya Multi Manager Mid. It trades about 0.04 of its potential returns per unit of risk. Voya Multi Manager Mid is currently generating about -0.01 per unit of risk. If you would invest 1,560 in Voya Jpmorgan Small on November 21, 2024 and sell it today you would earn a total of 130.00 from holding Voya Jpmorgan Small or generate 8.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Voya Jpmorgan Small vs. Voya Multi Manager Mid
Performance |
Timeline |
Voya Jpmorgan Small |
Voya Multi Manager |
Voya Jpmorgan and Voya Multi-manager Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya Jpmorgan and Voya Multi-manager
The main advantage of trading using opposite Voya Jpmorgan and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Jpmorgan position performs unexpectedly, Voya Multi-manager 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-manager will offset losses from the drop in Voya Multi-manager's long position.Voya Jpmorgan vs. Ab Global Bond | ||
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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