Correlation Between Specialized Technology and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Specialized Technology and Voya Intermediate 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 Specialized Technology and Voya Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Specialized Technology Fund and Voya Intermediate Bond, you can compare the effects of market volatilities on Specialized Technology and Voya Intermediate 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 Specialized Technology with a short position of Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Specialized Technology and Voya Intermediate.
Diversification Opportunities for Specialized Technology and Voya Intermediate
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Specialized and Voya is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Specialized Technology Fund and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate Bond and Specialized Technology 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 Specialized Technology Fund are associated (or correlated) with Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Specialized Technology i.e., Specialized Technology and Voya Intermediate go up and down completely randomly.
Pair Corralation between Specialized Technology and Voya Intermediate
If you would invest 870.00 in Voya Intermediate Bond on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Voya Intermediate Bond or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
Specialized Technology Fund vs. Voya Intermediate Bond
Performance |
| Timeline |
| Specialized Technology |
| Voya Intermediate Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Specialized Technology and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Specialized Technology and Voya Intermediate
The main advantage of trading using opposite Specialized Technology and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Specialized Technology position performs unexpectedly, Voya Intermediate 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 Intermediate will offset losses from the drop in Voya Intermediate's long position.| Specialized Technology vs. Deutsche Health And | Specialized Technology vs. Baillie Gifford Health | Specialized Technology vs. Blackrock Health Sciences | Specialized Technology vs. Hartford Healthcare Hls |
| Voya Intermediate vs. Technology Ultrasector Profund | Voya Intermediate vs. Specialized Technology Fund | Voya Intermediate vs. Fidelity Advisor Technology | Voya Intermediate vs. Invesco Technology Fund |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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