Correlation Between MINCO SILVER and Voya Financial
Can any of the company-specific risk be diversified away by investing in both MINCO SILVER and Voya Financial 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 MINCO SILVER and Voya Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MINCO SILVER and Voya Financial, you can compare the effects of market volatilities on MINCO SILVER and Voya Financial 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 MINCO SILVER with a short position of Voya Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINCO SILVER and Voya Financial.
Diversification Opportunities for MINCO SILVER and Voya Financial
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MINCO and Voya is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding MINCO SILVER and Voya Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Financial and MINCO SILVER 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 MINCO SILVER are associated (or correlated) with Voya Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Financial has no effect on the direction of MINCO SILVER i.e., MINCO SILVER and Voya Financial go up and down completely randomly.
Pair Corralation between MINCO SILVER and Voya Financial
Assuming the 90 days trading horizon MINCO SILVER is expected to generate 5.94 times more return on investment than Voya Financial. However, MINCO SILVER is 5.94 times more volatile than Voya Financial. It trades about 0.03 of its potential returns per unit of risk. Voya Financial is currently generating about -0.11 per unit of risk. If you would invest 13.00 in MINCO SILVER on October 13, 2024 and sell it today you would earn a total of 0.00 from holding MINCO SILVER or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINCO SILVER vs. Voya Financial
Performance |
| Timeline |
| MINCO SILVER |
| Voya Financial |
MINCO SILVER and Voya Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINCO SILVER and Voya Financial
The main advantage of trading using opposite MINCO SILVER and Voya Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINCO SILVER position performs unexpectedly, Voya Financial 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 Financial will offset losses from the drop in Voya Financial's long position.| MINCO SILVER vs. Iridium Communications | MINCO SILVER vs. AWILCO DRILLING PLC | MINCO SILVER vs. Entravision Communications | MINCO SILVER vs. T MOBILE INCDL 00001 |
| Voya Financial vs. MOVIE GAMES SA | Voya Financial vs. ARDAGH METAL PACDL 0001 | Voya Financial vs. De Grey Mining | Voya Financial vs. GEAR4MUSIC LS 10 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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