Correlation Between Voya Asia and Stone Harbor

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

By analyzing existing cross correlation between Voya Asia Pacific and Stone Harbor Emerging, you can compare the effects of market volatilities on Voya Asia and Stone Harbor 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 Voya Asia with a short position of Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Asia and Stone Harbor.

Diversification Opportunities for Voya Asia and Stone Harbor

0.0

Correlation Coefficient

Voya Asia  Stone Harbor

Pay attention - limited upside

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

Pair Corralation between Voya Asia and Stone Harbor

If you would invest  494.00  in Voya Asia Pacific on December 2, 2024 and sell it today you would earn a total of  133.00  from holding Voya Asia Pacific or generate 26.92% return on investment over 90 days.

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

Voya Asia Pacific  vs.  Stone Harbor Emerging

Voya Asia Pacific

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Asia Pacific are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound basic indicators, Voya Asia is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Stone Harbor Emerging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stone Harbor Emerging has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong fundamental indicators, Stone Harbor is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Voya Asia and Stone Harbor

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

The idea behind Voya Asia Pacific and Stone Harbor Emerging 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.