Correlation Between Voya Vacs and Voya Index
Can any of the company-specific risk be diversified away by investing in both Voya Vacs and Voya Index 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 Index 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 Index Solution, you can compare the effects of market volatilities on Voya Vacs and Voya Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Vacs and Voya Index.
Diversification Opportunities for Voya Vacs and Voya Index
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Voya is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Voya Vacs Index and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Voya Vacs i.e., Voya Vacs and Voya Index go up and down completely randomly.
Pair Corralation between Voya Vacs and Voya Index
Assuming the 90 days horizon Voya Vacs Index is expected to generate 1.85 times more return on investment than Voya Index. However, Voya Vacs is 1.85 times more volatile than Voya Index Solution. It trades about 0.06 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.09 per unit of risk. If you would invest 1,025 in Voya Vacs Index on August 29, 2024 and sell it today you would earn a total of 264.00 from holding Voya Vacs Index or generate 25.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Vacs Index vs. Voya Index Solution
Performance |
| Timeline |
| Voya Vacs Index |
| Voya Index Solution |
Voya Vacs and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Vacs and Voya Index
The main advantage of trading using opposite Voya Vacs and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Vacs position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| Voya Vacs vs. Vanguard Small Cap Index | Voya Vacs vs. T Rowe Price | Voya Vacs vs. HUMANA INC | Voya Vacs vs. Aquagold International |
| Voya Index vs. Voya Investors Trust | Voya Index vs. Voya Vacs Index | Voya Index vs. Voya Vacs Index | Voya Index vs. Voya Vacs Index |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |