Correlation Between Voya Index and Vy Baron
Can any of the company-specific risk be diversified away by investing in both Voya Index and Vy Baron 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 Vy Baron 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 Vy Baron Growth, you can compare the effects of market volatilities on Voya Index and Vy Baron 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 Vy Baron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Vy Baron.
Diversification Opportunities for Voya Index and Vy Baron
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and IBSSX is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Solution and Vy Baron Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Baron 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 Vy Baron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Baron Growth has no effect on the direction of Voya Index i.e., Voya Index and Vy Baron go up and down completely randomly.
Pair Corralation between Voya Index and Vy Baron
Assuming the 90 days horizon Voya Index Solution is expected to generate 0.55 times more return on investment than Vy Baron. However, Voya Index Solution is 1.81 times less risky than Vy Baron. It trades about 0.15 of its potential returns per unit of risk. Vy Baron Growth is currently generating about 0.02 per unit of risk. If you would invest 1,599 in Voya Index Solution on September 14, 2024 and sell it today you would earn a total of 22.00 from holding Voya Index Solution or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Voya Index Solution vs. Vy Baron Growth
Performance |
| Timeline |
| Voya Index Solution |
| Vy Baron Growth |
Voya Index and Vy Baron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Vy Baron
The main advantage of trading using opposite Voya Index and Vy Baron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Vy Baron 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 Vy Baron will offset losses from the drop in Vy Baron's long position.| Voya Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index vs. Voya Limited Maturity |
| Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Limited Maturity | Vy Baron vs. Voya Limited Maturity |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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