Correlation Between Cornerstone Strategic and Voya Asia

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

By analyzing existing cross correlation between Cornerstone Strategic Return and Voya Asia Pacific, you can compare the effects of market volatilities on Cornerstone Strategic and Voya Asia 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 Cornerstone Strategic with a short position of Voya Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and Voya Asia.

Diversification Opportunities for Cornerstone Strategic and Voya Asia

-0.39

Correlation Coefficient

Cornerstone Strategic  Voya Asia

Very good diversification

The 3 months correlation between Cornerstone and Voya is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Return and Voya Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Asia Pacific and Cornerstone Strategic 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 Cornerstone Strategic Return are associated (or correlated) with Voya Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Asia Pacific has no effect on the direction of Cornerstone Strategic i.e., Cornerstone Strategic and Voya Asia go up and down completely randomly.

Pair Corralation between Cornerstone Strategic and Voya Asia

Considering the 90-day investment horizon Cornerstone Strategic Return is expected to under-perform the Voya Asia. In addition to that, Cornerstone Strategic is 2.34 times more volatile than Voya Asia Pacific. It trades about -0.11 of its total potential returns per unit of risk. Voya Asia Pacific is currently generating about 0.1 per unit of volatility. If you would invest  592.00  in Voya Asia Pacific on December 29, 2024 and sell it today you would earn a total of  27.00  from holding Voya Asia Pacific or generate 4.56% return on investment over 90 days.

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

Cornerstone Strategic Return  vs.  Voya Asia Pacific

Cornerstone Strategic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cornerstone Strategic Return has generated negative risk-adjusted returns adding no value to fund investors. Despite unfluctuating performance in the last few months, the Fund's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the mutual fund stockholders.

Voya Asia Pacific

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Asia Pacific are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound basic indicators, Voya Asia is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cornerstone Strategic and Voya Asia

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

The idea behind Cornerstone Strategic Return and Voya Asia Pacific 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.