Correlation Between State Street and Voya Financial
Can any of the company-specific risk be diversified away by investing in both State Street 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 State Street and Voya Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street and Voya Financial, you can compare the effects of market volatilities on State Street 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 State Street with a short position of Voya Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Voya Financial.
Diversification Opportunities for State Street and Voya Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding State Street and Voya Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Financial and State Street 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 State Street 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 State Street i.e., State Street and Voya Financial go up and down completely randomly.
Pair Corralation between State Street and Voya Financial
If you would invest 9,061 in State Street on September 20, 2024 and sell it today you would earn a total of 325.00 from holding State Street or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
State Street vs. Voya Financial
Performance |
| Timeline |
| State Street |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Voya Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
State Street and Voya Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Voya Financial
The main advantage of trading using opposite State Street and Voya Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street 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.| State Street vs. 24SEVENOFFICE GROUP AB | State Street vs. Check Point Software | State Street vs. DXC Technology Co | State Street vs. KIMBALL ELECTRONICS |
| Voya Financial vs. Ebro Foods SA | Voya Financial vs. TYSON FOODS A | Voya Financial vs. PARKEN Sport Entertainment | Voya Financial vs. Kaiser Aluminum |
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.
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