Correlation Between Voya Vacs and Voya Investors
Can any of the company-specific risk be diversified away by investing in both Voya Vacs and Voya Investors 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 Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Vacs Series and Voya Investors Trust, you can compare the effects of market volatilities on Voya Vacs and Voya Investors 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 Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Vacs and Voya Investors.
Diversification Opportunities for Voya Vacs and Voya Investors
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Voya and Voya is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Voya Vacs Series and Voya Investors Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Investors Trust 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 Series are associated (or correlated) with Voya Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Investors Trust has no effect on the direction of Voya Vacs i.e., Voya Vacs and Voya Investors go up and down completely randomly.
Pair Corralation between Voya Vacs and Voya Investors
Assuming the 90 days horizon Voya Vacs is expected to generate 20.06 times less return on investment than Voya Investors. But when comparing it to its historical volatility, Voya Vacs Series is 18.36 times less risky than Voya Investors. It trades about 0.03 of its potential returns per unit of risk. Voya Investors Trust is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Voya Investors Trust on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Voya Investors Trust or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 69.49% |
| Values | Daily Returns |
Voya Vacs Series vs. Voya Investors Trust
Performance |
| Timeline |
| Voya Vacs Series |
| Voya Investors Trust |
Voya Vacs and Voya Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Vacs and Voya Investors
The main advantage of trading using opposite Voya Vacs and Voya Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Vacs position performs unexpectedly, Voya Investors 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 Investors will offset losses from the drop in Voya Investors' 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 Investors vs. Touchstone Large Cap | Voya Investors vs. Pace Large Value | Voya Investors vs. Aqr Large Cap | Voya Investors vs. Dana Large Cap |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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