Correlation Between Voya Vacs and Vy(r) Baron
Can any of the company-specific risk be diversified away by investing in both Voya Vacs and Vy(r) Baron 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 Vy(r) Baron 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 Vy Baron Growth, you can compare the effects of market volatilities on Voya Vacs and Vy(r) Baron 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 Vy(r) Baron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Vacs and Vy(r) Baron.
Diversification Opportunities for Voya Vacs and Vy(r) Baron
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Voya and Vy(r) is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Voya Vacs Index and Vy Baron Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Baron Growth 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 Vy(r) Baron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Baron Growth has no effect on the direction of Voya Vacs i.e., Voya Vacs and Vy(r) Baron go up and down completely randomly.
Pair Corralation between Voya Vacs and Vy(r) Baron
Assuming the 90 days horizon Voya Vacs is expected to generate 1.97 times less return on investment than Vy(r) Baron. But when comparing it to its historical volatility, Voya Vacs Index is 1.02 times less risky than Vy(r) Baron. It trades about 0.11 of its potential returns per unit of risk. Vy Baron Growth is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,992 in Vy Baron Growth on November 3, 2024 and sell it today you would earn a total of 75.00 from holding Vy Baron Growth or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Vacs Index vs. Vy Baron Growth
Performance |
| Timeline |
| Voya Vacs Index |
| Vy Baron Growth |
Voya Vacs and Vy(r) Baron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Vacs and Vy(r) Baron
The main advantage of trading using opposite Voya Vacs and Vy(r) Baron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Vacs position performs unexpectedly, Vy(r) Baron 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 Vy(r) Baron will offset losses from the drop in Vy(r) Baron's long position.| Voya Vacs vs. Tfa Alphagen Growth | Voya Vacs vs. Vanguard Growth And | Voya Vacs vs. Ab Small Cap | Voya Vacs vs. Versatile Bond Portfolio |
| Vy(r) Baron vs. Advent Claymore Convertible | Vy(r) Baron vs. Allianzgi Convertible Income | Vy(r) Baron vs. Virtus Convertible | Vy(r) Baron vs. Putnam Convertible Securities |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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