Correlation Between FinVolution and Voya Us
Can any of the company-specific risk be diversified away by investing in both FinVolution and Voya Us 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 FinVolution and Voya Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FinVolution Group and Voya Stock Index, you can compare the effects of market volatilities on FinVolution and Voya Us 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 FinVolution with a short position of Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinVolution and Voya Us.
Diversification Opportunities for FinVolution and Voya Us
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FinVolution and VOYA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding FinVolution Group and Voya Stock Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Stock Index and FinVolution 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 FinVolution Group are associated (or correlated) with Voya Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Stock Index has no effect on the direction of FinVolution i.e., FinVolution and Voya Us go up and down completely randomly.
Pair Corralation between FinVolution and Voya Us
Given the investment horizon of 90 days FinVolution Group is expected to generate 2.13 times more return on investment than Voya Us. However, FinVolution is 2.13 times more volatile than Voya Stock Index. It trades about 0.04 of its potential returns per unit of risk. Voya Stock Index is currently generating about 0.05 per unit of risk. If you would invest 496.00 in FinVolution Group on October 4, 2024 and sell it today you would earn a total of 175.00 from holding FinVolution Group or generate 35.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.8% |
Values | Daily Returns |
FinVolution Group vs. Voya Stock Index
Performance |
Timeline |
FinVolution Group |
Voya Stock Index |
FinVolution and Voya Us Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FinVolution and Voya Us
The main advantage of trading using opposite FinVolution and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinVolution position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.FinVolution vs. Visa Class A | FinVolution vs. Aquagold International | FinVolution vs. Thrivent High Yield | FinVolution vs. Morningstar Unconstrained Allocation |
Voya Us vs. Voya Bond Index | Voya Us vs. Voya Bond Index | Voya Us vs. Voya Limited Maturity | Voya Us vs. Voya Limited Maturity |
Check out your portfolio center.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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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