Correlation Between Champlain Small and Voya Multi-manager

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

By analyzing existing cross correlation between Champlain Small and Voya Multi Manager International, you can compare the effects of market volatilities on Champlain Small and Voya Multi-manager 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 Champlain Small with a short position of Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Voya Multi-manager.

Diversification Opportunities for Champlain Small and Voya Multi-manager

0.05

Correlation Coefficient

Champlain Small  Voya Multi-manager

Significant diversification

The 3 months correlation between Champlain and Voya is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager and Champlain Small 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 Champlain Small are associated (or correlated) with Voya Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Champlain Small i.e., Champlain Small and Voya Multi-manager go up and down completely randomly.

Pair Corralation between Champlain Small and Voya Multi-manager

Assuming the 90 days horizon Champlain Small is expected to generate 2.31 times more return on investment than Voya Multi-manager. However, Champlain Small is 2.31 times more volatile than Voya Multi Manager International. It trades about 0.01 of its potential returns per unit of risk. Voya Multi Manager International is currently generating about -0.14 per unit of risk. If you would invest  2,254  in Champlain Small on October 8, 2024 and sell it today you would earn a total of  14.00  from holding Champlain Small or generate 0.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Champlain Small  vs.  Voya Multi Manager Internation

Champlain Small

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Champlain Small are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Champlain Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya Multi Manager

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Multi Manager International has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Champlain Small and Voya Multi-manager

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

The idea behind Champlain Small and Voya Multi Manager International 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.