Correlation Between Voya Target and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Voya Target and Fidelity Series 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 Target and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Target Retirement and Fidelity Series Blue, you can compare the effects of market volatilities on Voya Target and Fidelity Series 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 Target with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and Fidelity Series.
Diversification Opportunities for Voya Target and Fidelity Series
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Voya and Fidelity is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement and Fidelity Series Blue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Blue and Voya Target 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 Target Retirement are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Blue has no effect on the direction of Voya Target i.e., Voya Target and Fidelity Series go up and down completely randomly.
Pair Corralation between Voya Target and Fidelity Series
Assuming the 90 days horizon Voya Target is expected to generate 3.16 times less return on investment than Fidelity Series. But when comparing it to its historical volatility, Voya Target Retirement is 2.09 times less risky than Fidelity Series. It trades about 0.07 of its potential returns per unit of risk. Fidelity Series Blue is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,060 in Fidelity Series Blue on October 11, 2024 and sell it today you would earn a total of 958.00 from holding Fidelity Series Blue or generate 90.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Voya Target Retirement vs. Fidelity Series Blue
Performance |
| Timeline |
| Voya Target Retirement |
| Fidelity Series Blue |
Voya Target and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Target and Fidelity Series
The main advantage of trading using opposite Voya Target and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, Fidelity Series 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 Fidelity Series will offset losses from the drop in Fidelity Series' long position.| Voya Target vs. Ultra Short Fixed Income | Voya Target vs. Siit Ultra Short | Voya Target vs. Aamhimco Short Duration | Voya Target vs. Touchstone Ultra Short |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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