Correlation Between Voya Smallcap and Voya Gnma
Can any of the company-specific risk be diversified away by investing in both Voya Smallcap 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 Smallcap 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 Smallcap Opportunities and Voya Gnma Income, you can compare the effects of market volatilities on Voya Smallcap 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 Smallcap with a short position of Voya Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Smallcap and Voya Gnma.
Diversification Opportunities for Voya Smallcap and Voya Gnma
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Voya is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Voya Smallcap Opportunities 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 Smallcap 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 Smallcap Opportunities 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 Smallcap i.e., Voya Smallcap and Voya Gnma go up and down completely randomly.
Pair Corralation between Voya Smallcap and Voya Gnma
Assuming the 90 days horizon Voya Smallcap Opportunities is expected to generate 4.14 times more return on investment than Voya Gnma. However, Voya Smallcap is 4.14 times more volatile than Voya Gnma Income. It trades about 0.25 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 2,381 in Voya Smallcap Opportunities on August 28, 2024 and sell it today you would earn a total of 217.00 from holding Voya Smallcap Opportunities or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Voya Smallcap Opportunities vs. Voya Gnma Income
Performance |
| Timeline |
| Voya Smallcap Opport |
| Voya Gnma Income |
Voya Smallcap and Voya Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Smallcap and Voya Gnma
The main advantage of trading using opposite Voya Smallcap and Voya Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Smallcap 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 Smallcap vs. Voya Bond Index | Voya Smallcap vs. Voya Bond Index | Voya Smallcap vs. Voya Limited Maturity | Voya Smallcap 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |