Correlation Between Voya Vacs and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Voya Vacs and Voya Retirement 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 Retirement 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 Retirement Solution, you can compare the effects of market volatilities on Voya Vacs and Voya Retirement 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 Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Vacs and Voya Retirement.
Diversification Opportunities for Voya Vacs and Voya Retirement
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Voya is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Voya Vacs Index and Voya Retirement Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement 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 Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Solution has no effect on the direction of Voya Vacs i.e., Voya Vacs and Voya Retirement go up and down completely randomly.
Pair Corralation between Voya Vacs and Voya Retirement
Assuming the 90 days horizon Voya Vacs Index is expected to under-perform the Voya Retirement. In addition to that, Voya Vacs is 1.47 times more volatile than Voya Retirement Solution. It trades about -0.21 of its total potential returns per unit of risk. Voya Retirement Solution is currently generating about 0.28 per unit of volatility. If you would invest 1,376 in Voya Retirement Solution on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Voya Retirement Solution or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Vacs Index vs. Voya Retirement Solution
Performance |
| Timeline |
| Voya Vacs Index |
| Voya Retirement Solution |
Voya Vacs and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Vacs and Voya Retirement
The main advantage of trading using opposite Voya Vacs and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Vacs position performs unexpectedly, Voya Retirement 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 Retirement will offset losses from the drop in Voya Retirement's long position.| Voya Vacs vs. Franklin Mutual Global | Voya Vacs vs. Templeton Growth Fund | Voya Vacs vs. Franklin Real Estate | Voya Vacs vs. HUMANA INC |
| Voya Retirement vs. American Funds 2060 | Voya Retirement vs. American Funds 2060 | Voya Retirement vs. American Funds 2060 | Voya Retirement vs. T Rowe Price |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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