Correlation Between Fiduciaryclaymore and Voya Global

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

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

Diversification Opportunities for Fiduciaryclaymore and Voya Global

0.0

Correlation Coefficient

Fiduciaryclaymore  Voya Global

Pay attention - limited upside

The 3 months correlation between Fiduciaryclaymore and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fiduciaryclaymore Energy Infra and Voya Global Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Advantage and Fiduciaryclaymore 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 Fiduciaryclaymore Energy Infrastructure 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 Advantage has no effect on the direction of Fiduciaryclaymore i.e., Fiduciaryclaymore and Voya Global go up and down completely randomly.

Pair Corralation between Fiduciaryclaymore and Voya Global

If you would invest  713.00  in Voya Global Advantage on August 31, 2024 and sell it today you would earn a total of  256.00  from holding Voya Global Advantage or generate 35.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	8.88%
Values	Daily Returns

Fiduciaryclaymore Energy Infra  vs.  Voya Global Advantage

Fiduciaryclaymore

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fiduciaryclaymore Energy Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy primary indicators, Fiduciaryclaymore is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Voya Global Advantage

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Global Advantage are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Voya Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fiduciaryclaymore and Voya Global

The main advantage of trading using opposite Fiduciaryclaymore and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiduciaryclaymore 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 Fiduciaryclaymore Energy Infrastructure and Voya Global Advantage 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.