Correlation Between Voya Global and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Voya Global and Voya Bond 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 Global and Voya Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Diversified and Voya Bond Index, you can compare the effects of market volatilities on Voya Global and Voya Bond 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 Global with a short position of Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Voya Bond.
Diversification Opportunities for Voya Global and Voya Bond
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Voya is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Diversified and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Voya Global 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 Global Diversified are associated (or correlated) with Voya Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Voya Global i.e., Voya Global and Voya Bond go up and down completely randomly.
Pair Corralation between Voya Global and Voya Bond
Assuming the 90 days horizon Voya Global Diversified is expected to generate 0.74 times more return on investment than Voya Bond. However, Voya Global Diversified is 1.35 times less risky than Voya Bond. It trades about -0.15 of its potential returns per unit of risk. Voya Bond Index is currently generating about -0.19 per unit of risk. If you would invest 697.00 in Voya Global Diversified on August 28, 2024 and sell it today you would lose (8.00) from holding Voya Global Diversified or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.12% |
| Values | Daily Returns |
Voya Global Diversified vs. Voya Bond Index
Performance |
| Timeline |
| Voya Global Diversified |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Voya Bond Index |
Voya Global and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Voya Bond
The main advantage of trading using opposite Voya Global and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Voya Bond 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 Bond will offset losses from the drop in Voya Bond's long position.| Voya Global vs. Voya Bond Index | Voya Global vs. Voya Bond Index | Voya Global vs. Voya Limited Maturity | Voya Global vs. Voya Limited Maturity |
| Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Emerging Markets |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |