Correlation Between Voya Target and Victory Floating
Can any of the company-specific risk be diversified away by investing in both Voya Target and Victory Floating 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 Victory Floating 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 Victory Floating Rate, you can compare the effects of market volatilities on Voya Target and Victory Floating 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 Victory Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and Victory Floating.
Diversification Opportunities for Voya Target and Victory Floating
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Voya and Victory is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement and Victory Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Floating Rate 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 Victory Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Floating Rate has no effect on the direction of Voya Target i.e., Voya Target and Victory Floating go up and down completely randomly.
Pair Corralation between Voya Target and Victory Floating
Assuming the 90 days horizon Voya Target Retirement is expected to generate 3.02 times more return on investment than Victory Floating. However, Voya Target is 3.02 times more volatile than Victory Floating Rate. It trades about 0.08 of its potential returns per unit of risk. Victory Floating Rate is currently generating about 0.21 per unit of risk. If you would invest 1,297 in Voya Target Retirement on October 26, 2024 and sell it today you would earn a total of 75.00 from holding Voya Target Retirement or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Voya Target Retirement vs. Victory Floating Rate
Performance |
| Timeline |
| Voya Target Retirement |
| Victory Floating Rate |
Voya Target and Victory Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Target and Victory Floating
The main advantage of trading using opposite Voya Target and Victory Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, Victory Floating 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 Victory Floating will offset losses from the drop in Victory Floating'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 |
| Victory Floating vs. Voya Target Retirement | Victory Floating vs. American Funds Retirement | Victory Floating vs. Columbia Moderate Growth | Victory Floating vs. Calvert Moderate Allocation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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