Correlation Between Voya Target and Vanguard Target
Can any of the company-specific risk be diversified away by investing in both Voya Target and Vanguard 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 Voya Target and Vanguard Target 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 Vanguard Target Retirement, you can compare the effects of market volatilities on Voya Target and Vanguard 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 Voya Target with a short position of Vanguard Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and Vanguard Target.
Diversification Opportunities for Voya Target and Vanguard Target
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Vanguard is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement and Vanguard Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Target Reti 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 Vanguard Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Target Reti has no effect on the direction of Voya Target i.e., Voya Target and Vanguard Target go up and down completely randomly.
Pair Corralation between Voya Target and Vanguard Target
Assuming the 90 days horizon Voya Target Retirement is expected to generate 1.0 times more return on investment than Vanguard Target. However, Voya Target Retirement is 1.0 times less risky than Vanguard Target. It trades about 0.13 of its potential returns per unit of risk. Vanguard Target Retirement is currently generating about 0.13 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Target Retirement vs. Vanguard Target Retirement
Performance |
| Timeline |
| Voya Target Retirement |
| Vanguard Target Reti |
Voya Target and Vanguard Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Target and Vanguard Target
The main advantage of trading using opposite Voya Target and Vanguard Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, Vanguard 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 Vanguard Target will offset losses from the drop in Vanguard Target's 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 |
| Vanguard Target vs. Ab Government Exchange | Vanguard Target vs. Franklin Government Money | Vanguard Target vs. Dws Government Money | Vanguard Target vs. Fidelity Series Government |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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