Correlation Between Vanguard Target and Voya Target
Can any of the company-specific risk be diversified away by investing in both Vanguard Target and Voya Target 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 Target and Voya Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Target Retirement and Voya Target Retirement, you can compare the effects of market volatilities on Vanguard Target and Voya Target 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 Target with a short position of Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Target and Voya Target.
Diversification Opportunities for Vanguard Target and Voya Target
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Voya is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Target Retirement and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement and Vanguard 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 Vanguard Target Retirement are associated (or correlated) with Voya Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of Vanguard Target i.e., Vanguard Target and Voya Target go up and down completely randomly.
Pair Corralation between Vanguard Target and Voya Target
Assuming the 90 days horizon Vanguard Target is expected to generate 1.0 times less return on investment than Voya Target. In addition to that, Vanguard Target is 1.04 times more volatile than Voya Target Retirement. It trades about 0.14 of its total potential returns per unit of risk. Voya Target Retirement is currently generating about 0.14 per unit of volatility. If you would invest 1,099 in Voya Target Retirement on September 4, 2024 and sell it today you would earn a total of 260.00 from holding Voya Target Retirement or generate 23.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Target Retirement vs. Voya Target Retirement
Performance |
| Timeline |
| Vanguard Target Reti |
| Voya Target Retirement |
Vanguard Target and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Target and Voya Target
The main advantage of trading using opposite Vanguard Target and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Target position performs unexpectedly, Voya Target 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 Target will offset losses from the drop in Voya Target's long position.| Vanguard Target vs. Vanguard Target Retirement | Vanguard Target vs. Vanguard Target Retirement | Vanguard Target vs. Vanguard Target Retirement | Vanguard Target vs. Vanguard Target Retirement |
| Voya Target vs. Voya Bond Index | Voya Target vs. Voya Bond Index | Voya Target vs. Voya Limited Maturity | Voya Target vs. Voya Limited Maturity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |