Correlation Between Voya Solution and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Voya Solution and Sterling Capital 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 Solution and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Solution 2060 and Sterling Capital Stratton, you can compare the effects of market volatilities on Voya Solution and Sterling Capital 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 Solution with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Sterling Capital.
Diversification Opportunities for Voya Solution and Sterling Capital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Voya and Sterling is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution 2060 and Sterling Capital Stratton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Stratton and Voya Solution 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 Solution 2060 are associated (or correlated) with Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Stratton has no effect on the direction of Voya Solution i.e., Voya Solution and Sterling Capital go up and down completely randomly.
Pair Corralation between Voya Solution and Sterling Capital
Assuming the 90 days horizon Voya Solution 2060 is expected to generate 0.67 times more return on investment than Sterling Capital. However, Voya Solution 2060 is 1.5 times less risky than Sterling Capital. It trades about 0.08 of its potential returns per unit of risk. Sterling Capital Stratton is currently generating about 0.03 per unit of risk. If you would invest 938.00 in Voya Solution 2060 on September 3, 2024 and sell it today you would earn a total of 292.00 from holding Voya Solution 2060 or generate 31.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Solution 2060 vs. Sterling Capital Stratton
Performance |
| Timeline |
| Voya Solution 2060 |
| Sterling Capital Stratton |
Voya Solution and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Solution and Sterling Capital
The main advantage of trading using opposite Voya Solution and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Voya Solution vs. American Funds 2060 | Voya Solution vs. American Funds 2060 | Voya Solution vs. American Funds 2060 | Voya Solution vs. T Rowe Price |
| Sterling Capital vs. Columbia Real Estate | Sterling Capital vs. Alpine Realty Income | Sterling Capital vs. Davis Real Estate | Sterling Capital vs. Sterling Capital Stratton |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
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| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |