Correlation Between XAI Octagon and Voya Asia
Can any of the company-specific risk be diversified away by investing in both XAI Octagon and Voya Asia 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 XAI Octagon and Voya Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAI Octagon Floating and Voya Asia Pacific, you can compare the effects of market volatilities on XAI Octagon and Voya Asia 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 XAI Octagon with a short position of Voya Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAI Octagon and Voya Asia.
Diversification Opportunities for XAI Octagon and Voya Asia
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XAI and Voya is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding XAI Octagon Floating and Voya Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Asia Pacific and XAI Octagon 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 XAI Octagon Floating are associated (or correlated) with Voya Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Asia Pacific has no effect on the direction of XAI Octagon i.e., XAI Octagon and Voya Asia go up and down completely randomly.
Pair Corralation between XAI Octagon and Voya Asia
Given the investment horizon of 90 days XAI Octagon Floating is expected to generate 0.39 times more return on investment than Voya Asia. However, XAI Octagon Floating is 2.53 times less risky than Voya Asia. It trades about 0.52 of its potential returns per unit of risk. Voya Asia Pacific is currently generating about -0.11 per unit of risk. If you would invest 679.00 in XAI Octagon Floating on September 3, 2024 and sell it today you would earn a total of 26.00 from holding XAI Octagon Floating or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAI Octagon Floating vs. Voya Asia Pacific
Performance |
| Timeline |
| XAI Octagon Floating |
| Voya Asia Pacific |
XAI Octagon and Voya Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAI Octagon and Voya Asia
The main advantage of trading using opposite XAI Octagon and Voya Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAI Octagon position performs unexpectedly, Voya Asia 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 Asia will offset losses from the drop in Voya Asia's long position.| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
| Voya Asia vs. Tekla Healthcare Investors | Voya Asia vs. Tekla Life Sciences | Voya Asia vs. Cohen Steers Reit | Voya Asia vs. XAI Octagon Floating |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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