Correlation Between Voya Real and Sa Real
Can any of the company-specific risk be diversified away by investing in both Voya Real and Sa Real 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 Real and Sa Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Real Estate and Sa Real Estate, you can compare the effects of market volatilities on Voya Real and Sa Real 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 Real with a short position of Sa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Real and Sa Real.
Diversification Opportunities for Voya Real and Sa Real
No risk reduction
The 3 months correlation between Voya and SAREX is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Real Estate and Sa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Real Estate and Voya Real 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 Real Estate are associated (or correlated) with Sa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Real Estate has no effect on the direction of Voya Real i.e., Voya Real and Sa Real go up and down completely randomly.
Pair Corralation between Voya Real and Sa Real
Assuming the 90 days horizon Voya Real is expected to generate 1.5 times less return on investment than Sa Real. But when comparing it to its historical volatility, Voya Real Estate is 1.02 times less risky than Sa Real. It trades about 0.02 of its potential returns per unit of risk. Sa Real Estate is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,061 in Sa Real Estate on November 9, 2024 and sell it today you would earn a total of 83.00 from holding Sa Real Estate or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Real Estate vs. Sa Real Estate
Performance |
| Timeline |
| Voya Real Estate |
| Sa Real Estate |
Voya Real and Sa Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Real and Sa Real
The main advantage of trading using opposite Voya Real and Sa Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Real position performs unexpectedly, Sa Real 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 Sa Real will offset losses from the drop in Sa Real's long position.| Voya Real vs. Jpmorgan Government Bond | Voya Real vs. Goldman Sachs Government | Voya Real vs. Davis Government Bond | Voya Real vs. Ridgeworth Seix Government |
| Sa Real vs. Guidemark Large Cap | Sa Real vs. Vest Large Cap | Sa Real vs. Guidemark Large Cap | Sa Real vs. Dodge Cox Stock |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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