Correlation Between Voya Solution and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Voya Solution and Voya Bond 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 Voya Bond 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 Voya Bond Index, you can compare the effects of market volatilities on Voya Solution and Voya Bond 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 Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Voya Bond.
Diversification Opportunities for Voya Solution and Voya Bond
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Voya is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution 2060 and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index 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 Voya Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Voya Solution i.e., Voya Solution and Voya Bond go up and down completely randomly.
Pair Corralation between Voya Solution and Voya Bond
Assuming the 90 days horizon Voya Solution 2060 is expected to under-perform the Voya Bond. In addition to that, Voya Solution is 17.65 times more volatile than Voya Bond Index. It trades about -0.13 of its total potential returns per unit of risk. Voya Bond Index is currently generating about 0.15 per unit of volatility. If you would invest 902.00 in Voya Bond Index on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Voya Bond Index or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Voya Solution 2060 vs. Voya Bond Index
Performance |
| Timeline |
| Voya Solution 2060 |
| Voya Bond Index |
Voya Solution and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Solution and Voya Bond
The main advantage of trading using opposite Voya Solution and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution position performs unexpectedly, Voya Bond 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 Bond will offset losses from the drop in Voya Bond's long position.| Voya Solution vs. Lord Abbett Inflation | Voya Solution vs. Ab Bond Inflation | Voya Solution vs. Goldman Sachs Inflation | Voya Solution vs. Aqr Managed Futures |
| Voya Bond vs. Large Cap Growth Profund | Voya Bond vs. Jhancock Disciplined Value | Voya Bond vs. Fidelity Series 1000 | Voya Bond vs. Lord Abbett Affiliated |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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