Correlation Between Voya Jpmorgan and Voya Index
Can any of the company-specific risk be diversified away by investing in both Voya Jpmorgan 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 Jpmorgan 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 Jpmorgan Small and Voya Index Plus, you can compare the effects of market volatilities on Voya Jpmorgan 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 Jpmorgan with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Jpmorgan and Voya Index.
Diversification Opportunities for Voya Jpmorgan and Voya Index
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Voya is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Voya Jpmorgan Small and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus 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 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 Plus has no effect on the direction of Voya Jpmorgan i.e., Voya Jpmorgan and Voya Index go up and down completely randomly.
Pair Corralation between Voya Jpmorgan and Voya Index
Assuming the 90 days horizon Voya Jpmorgan Small is expected to generate 1.48 times more return on investment than Voya Index. However, Voya Jpmorgan is 1.48 times more volatile than Voya Index Plus. It trades about 0.1 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.13 per unit of risk. If you would invest 1,525 in Voya Jpmorgan Small on August 27, 2024 and sell it today you would earn a total of 245.00 from holding Voya Jpmorgan Small or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Jpmorgan Small vs. Voya Index Plus
Performance |
| Timeline |
| Voya Jpmorgan Small |
| Voya Index Plus |
Voya Jpmorgan and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Jpmorgan and Voya Index
The main advantage of trading using opposite Voya Jpmorgan and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Jpmorgan 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 Jpmorgan vs. Voya Bond Index | Voya Jpmorgan vs. Voya Bond Index | Voya Jpmorgan vs. Voya Limited Maturity | Voya Jpmorgan vs. Voya Limited Maturity |
| Voya Index vs. Acm Tactical Income | Voya Index vs. L Abbett Fundamental | Voya Index vs. Qs Large Cap | Voya Index vs. Balanced Fund Investor |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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