Correlation Between Aquagold International and Voya Us

Can any of the company-specific risk be diversified away by investing in both Aquagold International and Voya Us 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 Aquagold International and Voya Us into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aquagold International and Voya Stock Index, you can compare the effects of market volatilities on Aquagold International and Voya Us 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 Aquagold International with a short position of Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Voya Us.

Diversification Opportunities for Aquagold International and Voya Us

0.49

Correlation Coefficient

Aquagold International  Voya Us

Very weak diversification

The 3 months correlation between Aquagold and Voya is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Voya Stock Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Stock Index and Aquagold International 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 Aquagold International are associated (or correlated) with Voya Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Stock Index has no effect on the direction of Aquagold International i.e., Aquagold International and Voya Us go up and down completely randomly.

Pair Corralation between Aquagold International and Voya Us

Given the investment horizon of 90 days Aquagold International is expected to under-perform the Voya Us. In addition to that, Aquagold International is 6.28 times more volatile than Voya Stock Index. It trades about -0.13 of its total potential returns per unit of risk. Voya Stock Index is currently generating about -0.05 per unit of volatility. If you would invest  1,912  in Voya Stock Index on December 28, 2024 and sell it today you would lose (67.00) from holding Voya Stock Index or give up 3.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Aquagold International  vs.  Voya Stock Index

Aquagold International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Voya Stock Index

Risk-Adjusted Performance

Very Weak

Over the last 90 days Voya Stock Index has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Voya Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aquagold International and Voya Us

The main advantage of trading using opposite Aquagold International and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.

The idea behind Aquagold International and Voya Stock Index pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.