Correlation Between Vanguard Total and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Vanguard Total 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 Vanguard Total and Voya Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total Bond and Voya Bond Index, you can compare the effects of market volatilities on Vanguard Total 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 Vanguard Total with a short position of Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Voya Bond.
Diversification Opportunities for Vanguard Total and Voya Bond
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vanguard and Voya is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Bond 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 Vanguard Total 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 Vanguard Total Bond 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 Vanguard Total i.e., Vanguard Total and Voya Bond go up and down completely randomly.
Pair Corralation between Vanguard Total and Voya Bond
If you would invest 912.00 in Vanguard Total Bond on September 3, 2024 and sell it today you would earn a total of 43.00 from holding Vanguard Total Bond or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
Vanguard Total Bond vs. Voya Bond Index
Performance |
| Timeline |
| Vanguard Total Bond |
| Voya Bond Index |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vanguard Total and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Voya Bond
The main advantage of trading using opposite Vanguard Total and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total 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.| Vanguard Total vs. Western Asset High | Vanguard Total vs. Pioneer High Yield | Vanguard Total vs. Artisan High Income | Vanguard Total vs. Lgm Risk Managed |
| Voya Bond vs. Goldman Sachs Short | Voya Bond vs. Jhancock Short Duration | Voya Bond vs. Locorr Longshort Modities | Voya Bond vs. Calvert Short Duration |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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