Correlation Between Barings Global and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Barings Global and Voya Solution 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 Barings Global and Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Voya Solution Aggressive, you can compare the effects of market volatilities on Barings Global and Voya Solution 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 Barings Global with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Voya Solution.
Diversification Opportunities for Barings Global and Voya Solution
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Voya is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Voya Solution Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Aggressive and Barings Global 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 Barings Global Floating are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Aggressive has no effect on the direction of Barings Global i.e., Barings Global and Voya Solution go up and down completely randomly.
Pair Corralation between Barings Global and Voya Solution
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.22 times more return on investment than Voya Solution. However, Barings Global Floating is 4.48 times less risky than Voya Solution. It trades about 0.18 of its potential returns per unit of risk. Voya Solution Aggressive is currently generating about 0.04 per unit of risk. If you would invest 860.00 in Barings Global Floating on September 26, 2024 and sell it today you would earn a total of 15.00 from holding Barings Global Floating or generate 1.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Barings Global Floating vs. Voya Solution Aggressive
Performance |
Timeline |
Barings Global Floating |
Voya Solution Aggressive |
Barings Global and Voya Solution Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barings Global and Voya Solution
The main advantage of trading using opposite Barings Global and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.Barings Global vs. Gabelli Convertible And | Barings Global vs. Absolute Convertible Arbitrage | Barings Global vs. Allianzgi Convertible Income | Barings Global vs. Rationalpier 88 Convertible |
Voya Solution vs. Fidelity Advisor Diversified | Voya Solution vs. Wealthbuilder Conservative Allocation | Voya Solution vs. Delaware Limited Term Diversified | Voya Solution vs. Aqr Diversified Arbitrage |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |