Correlation Between Voya Vacs and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Voya Vacs and Voya Multi-manager 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 Multi-manager 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 Multi Manager Mid, you can compare the effects of market volatilities on Voya Vacs and Voya Multi-manager 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 Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Vacs and Voya Multi-manager.
Diversification Opportunities for Voya Vacs and Voya Multi-manager
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voya and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Vacs Index and Voya Multi Manager Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Voya Vacs i.e., Voya Vacs and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Voya Vacs and Voya Multi-manager
If you would invest 958.00 in Voya Vacs Index on September 4, 2024 and sell it today you would earn a total of 179.00 from holding Voya Vacs Index or generate 18.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Voya Vacs Index vs. Voya Multi Manager Mid
Performance |
| Timeline |
| Voya Vacs Index |
| Voya Multi Manager |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Voya Vacs and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Vacs and Voya Multi-manager
The main advantage of trading using opposite Voya Vacs and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Vacs position performs unexpectedly, Voya Multi-manager 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 Multi-manager will offset losses from the drop in Voya Multi-manager's long position.| Voya Vacs vs. Voya Bond Index | Voya Vacs vs. Voya Bond Index | Voya Vacs vs. Voya Limited Maturity | Voya Vacs vs. Voya Limited Maturity |
| Voya Multi-manager vs. Adams Diversified Equity | Voya Multi-manager vs. Prudential Core Conservative | Voya Multi-manager vs. Lord Abbett Diversified | Voya Multi-manager vs. Massmutual Premier Diversified |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |