Correlation Between Voya Solution and Guidepath(r) Managed
Can any of the company-specific risk be diversified away by investing in both Voya Solution and Guidepath(r) Managed 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 Solution and Guidepath(r) Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Solution Conservative and Guidepath Managed Futures, you can compare the effects of market volatilities on Voya Solution and Guidepath(r) Managed 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 Solution with a short position of Guidepath(r) Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Guidepath(r) Managed.
Diversification Opportunities for Voya Solution and Guidepath(r) Managed
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Voya and Guidepath(r) is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Conservative and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures and Voya Solution 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 Solution Conservative are associated (or correlated) with Guidepath(r) Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Voya Solution i.e., Voya Solution and Guidepath(r) Managed go up and down completely randomly.
Pair Corralation between Voya Solution and Guidepath(r) Managed
Assuming the 90 days horizon Voya Solution Conservative is expected to generate 0.48 times more return on investment than Guidepath(r) Managed. However, Voya Solution Conservative is 2.09 times less risky than Guidepath(r) Managed. It trades about 0.12 of its potential returns per unit of risk. Guidepath Managed Futures is currently generating about 0.03 per unit of risk. If you would invest 1,004 in Voya Solution Conservative on November 3, 2024 and sell it today you would earn a total of 38.00 from holding Voya Solution Conservative or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Solution Conservative vs. Guidepath Managed Futures
Performance |
| Timeline |
| Voya Solution Conser |
| Guidepath Managed Futures |
Voya Solution and Guidepath(r) Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Solution and Guidepath(r) Managed
The main advantage of trading using opposite Voya Solution and Guidepath(r) Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution position performs unexpectedly, Guidepath(r) Managed 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 Guidepath(r) Managed will offset losses from the drop in Guidepath(r) Managed's long position.| Voya Solution vs. Advent Claymore Convertible | Voya Solution vs. Fidelity Sai Convertible | Voya Solution vs. Calamos Dynamic Convertible | Voya Solution vs. Absolute Convertible Arbitrage |
| Guidepath(r) Managed vs. Calvert International Equity | Guidepath(r) Managed vs. T Rowe Price | Guidepath(r) Managed vs. Ultra Short Fixed Income | Guidepath(r) Managed vs. Aqr Long Short Equity |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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