Correlation Between Voya Large and Voya Gnma
Can any of the company-specific risk be diversified away by investing in both Voya Large and Voya Gnma 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 Gnma 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 Gnma Income, you can compare the effects of market volatilities on Voya Large and Voya Gnma 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 Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large and Voya Gnma.
Diversification Opportunities for Voya Large and Voya Gnma
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VOYA and Voya is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap and Voya Gnma Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Gnma Income 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 Gnma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Gnma Income has no effect on the direction of Voya Large i.e., Voya Large and Voya Gnma go up and down completely randomly.
Pair Corralation between Voya Large and Voya Gnma
Assuming the 90 days horizon Voya Large Cap is expected to generate 2.98 times more return on investment than Voya Gnma. However, Voya Large is 2.98 times more volatile than Voya Gnma Income. It trades about 0.15 of its potential returns per unit of risk. Voya Gnma Income is currently generating about 0.12 per unit of risk. If you would invest 1,742 in Voya Large Cap on August 28, 2024 and sell it today you would earn a total of 66.00 from holding Voya Large Cap or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Voya Large Cap vs. Voya Gnma Income
Performance |
| Timeline |
| Voya Large Cap |
| Voya Gnma Income |
Voya Large and Voya Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large and Voya Gnma
The main advantage of trading using opposite Voya Large and Voya Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large position performs unexpectedly, Voya Gnma 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 Gnma will offset losses from the drop in Voya Gnma's long position.| Voya Large vs. Voya Bond Index | Voya Large vs. Voya Bond Index | Voya Large vs. Voya Limited Maturity | Voya Large vs. Voya Limited Maturity |
| Voya Gnma vs. Fabxx | Voya Gnma vs. Leggmason Partners Institutional | Voya Gnma vs. Falcon Focus Scv | Voya Gnma vs. T Rowe Price |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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