Correlation Between Voya Vacs and Vanguard Total
Can any of the company-specific risk be diversified away by investing in both Voya Vacs and Vanguard Total 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 Vanguard Total 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 Vanguard Total International, you can compare the effects of market volatilities on Voya Vacs and Vanguard Total 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 Vanguard Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Vacs and Vanguard Total.
Diversification Opportunities for Voya Vacs and Vanguard Total
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Vanguard is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Voya Vacs Index and Vanguard Total International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total Inter 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 Vanguard Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total Inter has no effect on the direction of Voya Vacs i.e., Voya Vacs and Vanguard Total go up and down completely randomly.
Pair Corralation between Voya Vacs and Vanguard Total
Assuming the 90 days horizon Voya Vacs Index is expected to generate 1.21 times more return on investment than Vanguard Total. However, Voya Vacs is 1.21 times more volatile than Vanguard Total International. It trades about 0.25 of its potential returns per unit of risk. Vanguard Total International is currently generating about 0.05 per unit of risk. If you would invest 1,100 in Voya Vacs Index on October 24, 2024 and sell it today you would earn a total of 39.00 from holding Voya Vacs Index or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Voya Vacs Index vs. Vanguard Total International
Performance |
| Timeline |
| Voya Vacs Index |
| Vanguard Total Inter |
Voya Vacs and Vanguard Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Vacs and Vanguard Total
The main advantage of trading using opposite Voya Vacs and Vanguard Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Vacs position performs unexpectedly, Vanguard Total 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 Vanguard Total will offset losses from the drop in Vanguard Total's long position.| Voya Vacs vs. American High Income Municipal | Voya Vacs vs. T Rowe Price | Voya Vacs vs. Ab Municipal Bond | Voya Vacs vs. Virtus Seix Government |
| Vanguard Total vs. Morningstar Global Income | Vanguard Total vs. Qs Global Equity | Vanguard Total vs. Issachar Fund Class | Vanguard Total vs. Qs 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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