Correlation Between Voya Index and Voya Us
Can any of the company-specific risk be diversified away by investing in both Voya Index and Voya Us 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 Us 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 Stock Index, you can compare the effects of market volatilities on Voya Index and Voya Us 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 Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Voya Us.
Diversification Opportunities for Voya Index and Voya Us
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Voya is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Solution and Voya Stock Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Stock Index 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 Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Stock Index has no effect on the direction of Voya Index i.e., Voya Index and Voya Us go up and down completely randomly.
Pair Corralation between Voya Index and Voya Us
Assuming the 90 days horizon Voya Index is expected to generate 1.06 times less return on investment than Voya Us. But when comparing it to its historical volatility, Voya Index Solution is 1.21 times less risky than Voya Us. It trades about 0.07 of its potential returns per unit of risk. Voya Stock Index is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,593 in Voya Stock Index on November 19, 2024 and sell it today you would earn a total of 516.00 from holding Voya Stock Index or generate 32.39% 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 Stock Index
Performance |
| Timeline |
| Voya Index Solution |
| Voya Stock Index |
Voya Index and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Voya Us
The main advantage of trading using opposite Voya Index and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.| Voya Index vs. Blackrock Global Longshort | Voya Index vs. Delaware Investments Ultrashort | Voya Index vs. Transamerica Short Term Bond | Voya Index vs. Calvert Short Duration |
| Voya Us vs. Qs Global Equity | Voya Us vs. Rbb Fund | Voya Us vs. T Rowe Price | Voya Us vs. Gmo Global Equity |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |