Correlation Between Allspring Income and Voya Global

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

By analyzing existing cross correlation between Allspring Income Opportunities and Voya Global Equity, you can compare the effects of market volatilities on Allspring Income 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 Allspring Income with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allspring Income and Voya Global.

Diversification Opportunities for Allspring Income and Voya Global

0.2

Correlation Coefficient

Allspring Income  Voya Global

Modest diversification

The 3 months correlation between Allspring and Voya is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Allspring Income Opportunities 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 Allspring Income 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 Allspring Income Opportunities 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 Allspring Income i.e., Allspring Income and Voya Global go up and down completely randomly.

Pair Corralation between Allspring Income and Voya Global

Considering the 90-day investment horizon Allspring Income is expected to generate 2.83 times less return on investment than Voya Global. But when comparing it to its historical volatility, Allspring Income Opportunities is 1.53 times less risky than Voya Global. It trades about 0.11 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 Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Allspring Income Opportunities  vs.  Voya Global Equity

Allspring Income Opp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allspring Income Opportunities are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound basic indicators, Allspring Income is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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 Allspring Income and Voya Global

The main advantage of trading using opposite Allspring Income and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allspring Income 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 Allspring Income Opportunities 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.