Correlation Between Blackrock Debt and Voya Global

Can any of the company-specific risk be diversified away by investing in both Blackrock Debt 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 Debt 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 Debt Strategies and Voya Global Equity, you can compare the effects of market volatilities on Blackrock Debt 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 Debt with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Debt and Voya Global.

Diversification Opportunities for Blackrock Debt and Voya Global

-0.03

Correlation Coefficient

Blackrock Debt  Voya Global

Good diversification

The 3 months correlation between Blackrock and Voya is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Debt Strategies 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 Debt 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 Debt Strategies 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 Debt i.e., Blackrock Debt and Voya Global go up and down completely randomly.

Pair Corralation between Blackrock Debt and Voya Global

Considering the 90-day investment horizon Blackrock Debt is expected to generate 16.02 times less return on investment than Voya Global. But when comparing it to its historical volatility, Blackrock Debt Strategies is 1.63 times less risky than Voya Global. It trades about 0.02 of its potential returns per unit of risk. Voya Global Equity is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  528.00  in Voya Global Equity on December 28, 2024 and sell it today you would earn a total of  46.00  from holding Voya Global Equity or generate 8.71% return on investment over 90 days.

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

Blackrock Debt Strategies  vs.  Voya Global Equity

Blackrock Debt Strategies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Debt Strategies are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively stable basic indicators, Blackrock Debt is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 abnormal 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 Debt and Voya Global

The main advantage of trading using opposite Blackrock Debt and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Debt 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 Debt Strategies 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.