Correlation Between Voya Prime and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Voya Prime and Eagle Small 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 Prime and Eagle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Prime Rate and Eagle Small Cap, you can compare the effects of market volatilities on Voya Prime and Eagle Small 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 Prime with a short position of Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Prime and Eagle Small.
Diversification Opportunities for Voya Prime and Eagle Small
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Eagle is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Voya Prime Rate and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap and Voya Prime 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 Prime Rate are associated (or correlated) with Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Voya Prime i.e., Voya Prime and Eagle Small go up and down completely randomly.
Pair Corralation between Voya Prime and Eagle Small
Assuming the 90 days horizon Voya Prime is expected to generate 1.56 times less return on investment than Eagle Small. But when comparing it to its historical volatility, Voya Prime Rate is 3.77 times less risky than Eagle Small. It trades about 0.55 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,536 in Eagle Small Cap on August 28, 2024 and sell it today you would earn a total of 181.00 from holding Eagle Small Cap or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Prime Rate vs. Eagle Small Cap
Performance |
| Timeline |
| Voya Prime Rate |
| Eagle Small Cap |
Voya Prime and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Prime and Eagle Small
The main advantage of trading using opposite Voya Prime and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Prime position performs unexpectedly, Eagle Small 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 Eagle Small will offset losses from the drop in Eagle Small's long position.| Voya Prime vs. Qs Large Cap | Voya Prime vs. Aqr Large Cap | Voya Prime vs. Quantitative U S | Voya Prime vs. Fisher Large Cap |
| Eagle Small vs. Pgim Jennison Technology | Eagle Small vs. Janus Global Technology | Eagle Small vs. Towpath Technology | Eagle Small vs. Biotechnology Ultrasector Profund |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |