Correlation Between Voya Prime and Martin Currie
Can any of the company-specific risk be diversified away by investing in both Voya Prime and Martin Currie 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 Martin Currie 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 Martin Currie Emerging, you can compare the effects of market volatilities on Voya Prime and Martin Currie 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 Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Prime and Martin Currie.
Diversification Opportunities for Voya Prime and Martin Currie
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Martin is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Voya Prime Rate and Martin Currie Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Emerging 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 Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Emerging has no effect on the direction of Voya Prime i.e., Voya Prime and Martin Currie go up and down completely randomly.
Pair Corralation between Voya Prime and Martin Currie
Assuming the 90 days horizon Voya Prime Rate is expected to generate 0.63 times more return on investment than Martin Currie. However, Voya Prime Rate is 1.58 times less risky than Martin Currie. It trades about 0.68 of its potential returns per unit of risk. Martin Currie Emerging is currently generating about 0.07 per unit of risk. If you would invest 747.00 in Voya Prime Rate on September 13, 2024 and sell it today you would earn a total of 46.00 from holding Voya Prime Rate or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Voya Prime Rate vs. Martin Currie Emerging
Performance |
| Timeline |
| Voya Prime Rate |
| Martin Currie Emerging |
Voya Prime and Martin Currie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Prime and Martin Currie
The main advantage of trading using opposite Voya Prime and Martin Currie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Prime position performs unexpectedly, Martin Currie 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 Martin Currie will offset losses from the drop in Martin Currie's long position.| Voya Prime vs. Vanguard Total Stock | Voya Prime vs. Vanguard 500 Index | Voya Prime vs. Vanguard Total Stock | Voya Prime vs. Vanguard Total Stock |
| Martin Currie vs. Clearbridge Aggressive Growth | Martin Currie vs. Clearbridge Small Cap | Martin Currie vs. Qs International Equity | Martin Currie vs. Clearbridge Appreciation 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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