Correlation Between Blackrock Enhanced and Voya Global

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

By analyzing existing cross correlation between Blackrock Enhanced Capital and Voya Global Equity, you can compare the effects of market volatilities on Blackrock Enhanced and Voya Global 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 Blackrock Enhanced with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Enhanced and Voya Global.

Diversification Opportunities for Blackrock Enhanced and Voya Global

-0.5

Correlation Coefficient

Blackrock Enhanced  Voya Global

Very good diversification

The 3 months correlation between Blackrock and Voya is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Enhanced Capital and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity and Blackrock Enhanced 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 Blackrock Enhanced Capital are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Blackrock Enhanced i.e., Blackrock Enhanced and Voya Global go up and down completely randomly.

Pair Corralation between Blackrock Enhanced and Voya Global

Considering the 90-day investment horizon Blackrock Enhanced Capital is expected to under-perform the Voya Global. In addition to that, Blackrock Enhanced is 1.3 times more volatile than Voya Global Equity. It trades about -0.07 of its total potential returns per unit of risk. Voya Global Equity is currently generating about 0.19 per unit of volatility. If you would invest  528.00  in Voya Global Equity on December 28, 2024 and sell it today you would earn a total of  44.00  from holding Voya Global Equity or generate 8.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Blackrock Enhanced Capital  vs.  Voya Global Equity

Blackrock Enhanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Enhanced Capital has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong forward indicators, Blackrock Enhanced is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Voya Global Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Global Equity are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather weak technical and fundamental indicators, Voya Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Blackrock Enhanced and Voya Global

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

The idea behind Blackrock Enhanced Capital and Voya Global Equity 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.