Correlation Between Voya Target and Hartford Core
Can any of the company-specific risk be diversified away by investing in both Voya Target and Hartford Core 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 Hartford Core 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 Hartford E Equity, you can compare the effects of market volatilities on Voya Target and Hartford Core 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 Hartford Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and Hartford Core.
Diversification Opportunities for Voya Target and Hartford Core
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Hartford is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement and Hartford E Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford E Equity 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 Hartford Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford E Equity has no effect on the direction of Voya Target i.e., Voya Target and Hartford Core go up and down completely randomly.
Pair Corralation between Voya Target and Hartford Core
Assuming the 90 days horizon Voya Target Retirement is expected to generate 0.47 times more return on investment than Hartford Core. However, Voya Target Retirement is 2.12 times less risky than Hartford Core. It trades about 0.0 of its potential returns per unit of risk. Hartford E Equity is currently generating about -0.04 per unit of risk. If you would invest 1,355 in Voya Target Retirement on October 24, 2024 and sell it today you would lose (2.00) from holding Voya Target Retirement or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.78% |
| Values | Daily Returns |
Voya Target Retirement vs. Hartford E Equity
Performance |
| Timeline |
| Voya Target Retirement |
| Hartford E Equity |
Voya Target and Hartford Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Target and Hartford Core
The main advantage of trading using opposite Voya Target and Hartford Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, Hartford Core 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 Hartford Core will offset losses from the drop in Hartford Core's long position.| Voya Target vs. Voya Bond Index | Voya Target vs. Voya Bond Index | Voya Target vs. Voya Limited Maturity | Voya Target vs. Voya Limited Maturity |
| Hartford Core vs. Wealthbuilder Moderate Balanced | Hartford Core vs. Voya Target Retirement | Hartford Core vs. College Retirement Equities | Hartford Core vs. Jp Morgan Smartretirement |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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