Correlation Between Blackrock Mid and Voya Russia

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

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

Diversification Opportunities for Blackrock Mid and Voya Russia

0.63

Correlation Coefficient

Blackrock Mid  Voya Russia

Poor diversification

The 3 months correlation between Blackrock and Voya is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Mid Cap and Voya Russia Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Russia Fund and Blackrock Mid 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 Mid Cap are associated (or correlated) with Voya Russia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Russia Fund has no effect on the direction of Blackrock Mid i.e., Blackrock Mid and Voya Russia go up and down completely randomly.

Pair Corralation between Blackrock Mid and Voya Russia

Assuming the 90 days horizon Blackrock Mid is expected to generate 7.55 times less return on investment than Voya Russia. But when comparing it to its historical volatility, Blackrock Mid Cap is 7.26 times less risky than Voya Russia. It trades about 0.08 of its potential returns per unit of risk. Voya Russia Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  37.00  in Voya Russia Fund on September 23, 2024 and sell it today you would earn a total of  31.00  from holding Voya Russia Fund or generate 83.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	28.17%
Values	Daily Returns

Blackrock Mid Cap  vs.  Voya Russia Fund

Blackrock Mid Cap

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Mid Cap are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Blackrock Mid may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Voya Russia Fund

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Blackrock Mid and Voya Russia

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

The idea behind Blackrock Mid Cap and Voya Russia Fund 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.