Correlation Between Voya Prime and Salient International
Can any of the company-specific risk be diversified away by investing in both Voya Prime and Salient International 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 Salient International 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 Salient International Real, you can compare the effects of market volatilities on Voya Prime and Salient International 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 Salient International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Prime and Salient International.
Diversification Opportunities for Voya Prime and Salient International
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Salient is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Voya Prime Rate and Salient International Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient International 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 Salient International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient International has no effect on the direction of Voya Prime i.e., Voya Prime and Salient International go up and down completely randomly.
Pair Corralation between Voya Prime and Salient International
Assuming the 90 days horizon Voya Prime Rate is expected to generate 0.54 times more return on investment than Salient International. However, Voya Prime Rate is 1.85 times less risky than Salient International. It trades about 0.49 of its potential returns per unit of risk. Salient International Real is currently generating about -0.01 per unit of risk. If you would invest 727.00 in Voya Prime Rate on August 26, 2024 and sell it today you would earn a total of 32.00 from holding Voya Prime Rate or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Prime Rate vs. Salient International Real
Performance |
| Timeline |
| Voya Prime Rate |
| Salient International |
Voya Prime and Salient International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Prime and Salient International
The main advantage of trading using opposite Voya Prime and Salient International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Prime position performs unexpectedly, Salient International 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 Salient International will offset losses from the drop in Salient International's long position.| Voya Prime vs. Blackstone Gso Long | Voya Prime vs. First Trust Senior | Voya Prime vs. Eaton Vance Senior | Voya Prime vs. Blackstone Gso Strategic |
| Salient International vs. Salient Tactical Plus | Salient International vs. Salient Tactical Plus | Salient International vs. Salient Tactical Growth | Salient International vs. Salient Tactical Growth |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| 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 | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets |