Correlation Between Voya Bond and Virtus High
Can any of the company-specific risk be diversified away by investing in both Voya Bond and Virtus High 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 Bond and Virtus High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Bond Index and Virtus High Yield, you can compare the effects of market volatilities on Voya Bond and Virtus High 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 Bond with a short position of Virtus High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Bond and Virtus High.
Diversification Opportunities for Voya Bond and Virtus High
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Virtus is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Virtus High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus High Yield and Voya Bond 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 Bond Index are associated (or correlated) with Virtus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus High Yield has no effect on the direction of Voya Bond i.e., Voya Bond and Virtus High go up and down completely randomly.
Pair Corralation between Voya Bond and Virtus High
If you would invest 380.00 in Virtus High Yield on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Virtus High Yield or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Voya Bond Index vs. Virtus High Yield
Performance |
| Timeline |
| Voya Bond Index |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Virtus High Yield |
Voya Bond and Virtus High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Bond and Virtus High
The main advantage of trading using opposite Voya Bond and Virtus High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Bond position performs unexpectedly, Virtus High 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 Virtus High will offset losses from the drop in Virtus High's long position.| Voya Bond vs. Goldman Sachs Short | Voya Bond vs. Jhancock Short Duration | Voya Bond vs. Locorr Longshort Modities | Voya Bond vs. Calvert Short Duration |
| Virtus High vs. Ppm High Yield | Virtus High vs. Guggenheim High Yield | Virtus High vs. Fidelity Capital Income | Virtus High vs. Pace High Yield |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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