Correlation Between Voya Vacs and Voya Multi
Can any of the company-specific risk be diversified away by investing in both Voya Vacs and Voya Multi 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 Vacs and Voya Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Vacs Index and Voya Multi Manager International, you can compare the effects of market volatilities on Voya Vacs and Voya Multi 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 Vacs with a short position of Voya Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Vacs and Voya Multi.
Diversification Opportunities for Voya Vacs and Voya Multi
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Voya is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Voya Vacs Index and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager and Voya Vacs 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 Vacs Index are associated (or correlated) with Voya Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Voya Vacs i.e., Voya Vacs and Voya Multi go up and down completely randomly.
Pair Corralation between Voya Vacs and Voya Multi
Assuming the 90 days horizon Voya Vacs Index is expected to generate 2.13 times more return on investment than Voya Multi. However, Voya Vacs is 2.13 times more volatile than Voya Multi Manager International. It trades about 0.07 of its potential returns per unit of risk. Voya Multi Manager International is currently generating about 0.07 per unit of risk. If you would invest 925.00 in Voya Vacs Index on September 3, 2024 and sell it today you would earn a total of 370.00 from holding Voya Vacs Index or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 15.94% |
| Values | Daily Returns |
Voya Vacs Index vs. Voya Multi Manager Internation
Performance |
| Timeline |
| Voya Vacs Index |
| Voya Multi Manager |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Voya Vacs and Voya Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Vacs and Voya Multi
The main advantage of trading using opposite Voya Vacs and Voya Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Vacs position performs unexpectedly, Voya Multi 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 Multi will offset losses from the drop in Voya Multi's long position.| Voya Vacs vs. Vanguard Small Cap Index | Voya Vacs vs. Vanguard Small Cap Index | Voya Vacs vs. Vanguard Small Cap Index | Voya Vacs vs. Vanguard Small Cap Index |
| Voya Multi vs. Touchstone Premium Yield | Voya Multi vs. Transamerica Funds | Voya Multi vs. Gmo High Yield | Voya Multi vs. Bbh Intermediate Municipal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |