Correlation Between Voya Large and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Voya Large and Voya Bond 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 Large and Voya Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Large Cap and Voya Bond Index, you can compare the effects of market volatilities on Voya Large and Voya Bond 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 Large with a short position of Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large and Voya Bond.
Diversification Opportunities for Voya Large and Voya Bond
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VOYA and Voya is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Voya Large 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 Large Cap are associated (or correlated) with Voya Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Voya Large i.e., Voya Large and Voya Bond go up and down completely randomly.
Pair Corralation between Voya Large and Voya Bond
Assuming the 90 days horizon Voya Large Cap is expected to generate 3.61 times more return on investment than Voya Bond. However, Voya Large is 3.61 times more volatile than Voya Bond Index. It trades about 0.13 of its potential returns per unit of risk. Voya Bond Index is currently generating about -0.11 per unit of risk. If you would invest 1,662 in Voya Large Cap on August 26, 2024 and sell it today you would earn a total of 149.00 from holding Voya Large Cap or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Large Cap vs. Voya Bond Index
Performance |
| Timeline |
| Voya Large Cap |
| Voya Bond Index |
Voya Large and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large and Voya Bond
The main advantage of trading using opposite Voya Large and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large position performs unexpectedly, Voya Bond 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 Bond will offset losses from the drop in Voya Bond's long position.| Voya Large vs. Nuveen Minnesota Municipal | Voya Large vs. T Rowe Price | Voya Large vs. Ab Impact Municipal | Voya Large vs. Counterpoint Tactical Municipal |
| Voya Bond vs. Nationwide Small Cap | Voya Bond vs. Ab Small Cap | Voya Bond vs. Baird Smallmid Cap | Voya Bond vs. M3sixty Capital Small |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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