Correlation Between Guggenheim Market and Voya Corporate

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

By analyzing existing cross correlation between Guggenheim Market Neutral and Voya Corporate Leaders, you can compare the effects of market volatilities on Guggenheim Market and Voya Corporate 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 Guggenheim Market with a short position of Voya Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Market and Voya Corporate.

Diversification Opportunities for Guggenheim Market and Voya Corporate

0.0

Correlation Coefficient

Guggenheim Market  Voya Corporate

Pay attention - limited upside

The 3 months correlation between Guggenheim and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Market Neutral and Voya Corporate Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Corporate Leaders and Guggenheim Market 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 Guggenheim Market Neutral are associated (or correlated) with Voya Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Corporate Leaders has no effect on the direction of Guggenheim Market i.e., Guggenheim Market and Voya Corporate go up and down completely randomly.

Pair Corralation between Guggenheim Market and Voya Corporate

If you would invest (100.00) in Voya Corporate Leaders on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Voya Corporate Leaders or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Guggenheim Market Neutral  vs.  Voya Corporate Leaders

Guggenheim Market Neutral

Risk-Adjusted Performance

Very Weak

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

Voya Corporate Leaders

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Guggenheim Market and Voya Corporate

The main advantage of trading using opposite Guggenheim Market and Voya Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Market position performs unexpectedly, Voya Corporate 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 Corporate will offset losses from the drop in Voya Corporate's long position.

The idea behind Guggenheim Market Neutral and Voya Corporate Leaders 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.