Correlation Between Chartwell Short and Voya Solution

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

By analyzing existing cross correlation between Chartwell Short Duration and Voya Solution Aggressive, you can compare the effects of market volatilities on Chartwell Short 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 Chartwell Short with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Short and Voya Solution.

Diversification Opportunities for Chartwell Short and Voya Solution

0.05

Correlation Coefficient

Chartwell Short  Voya Solution

Significant diversification

The 3 months correlation between Chartwell and Voya is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Short Duration 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 Chartwell Short 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 Chartwell Short Duration 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 Chartwell Short i.e., Chartwell Short and Voya Solution go up and down completely randomly.

Pair Corralation between Chartwell Short and Voya Solution

Assuming the 90 days horizon Chartwell Short Duration is expected to generate 0.11 times more return on investment than Voya Solution. However, Chartwell Short Duration is 9.04 times less risky than Voya Solution. It trades about 0.29 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  938.00  in Chartwell Short Duration on December 21, 2024 and sell it today you would earn a total of  16.00  from holding Chartwell Short Duration or generate 1.71% return on investment over 90 days.

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

Chartwell Short Duration  vs.  Voya Solution Aggressive

Chartwell Short Duration

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chartwell Short Duration are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Chartwell Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya Solution Aggressive

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Chartwell Short and Voya Solution

The main advantage of trading using opposite Chartwell Short and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Short 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.

The idea behind Chartwell Short Duration and Voya Solution Aggressive 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.