Correlation Between Voya Target and Voya Us
Can any of the company-specific risk be diversified away by investing in both Voya Target and Voya Us 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 Target and Voya Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Target Retirement and Voya Bond Index, you can compare the effects of market volatilities on Voya Target and Voya Us 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 Target with a short position of Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and Voya Us.
Diversification Opportunities for Voya Target and Voya Us
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Voya is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement 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 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 Voya Target Retirement are associated (or correlated) with Voya Us. 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 Target i.e., Voya Target and Voya Us go up and down completely randomly.
Pair Corralation between Voya Target and Voya Us
Assuming the 90 days horizon Voya Target Retirement is expected to generate 1.55 times more return on investment than Voya Us. However, Voya Target is 1.55 times more volatile than Voya Bond Index. It trades about 0.13 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.05 per unit of risk. If you would invest 1,183 in Voya Target Retirement on September 2, 2024 and sell it today you would earn a total of 232.00 from holding Voya Target Retirement or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Target Retirement vs. Voya Bond Index
Performance |
| Timeline |
| Voya Target Retirement |
| Voya Bond Index |
Voya Target and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Target and Voya Us
The main advantage of trading using opposite Voya Target and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.| Voya Target vs. Voya Bond Index | Voya Target vs. Voya Bond Index | Voya Target vs. Voya Limited Maturity | Voya Target vs. Voya Limited Maturity |
| Voya Us vs. Technology Ultrasector Profund | Voya Us vs. Science Technology Fund | Voya Us vs. Biotechnology Ultrasector Profund | Voya Us vs. Goldman Sachs Technology |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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