Correlation Between Voya Solution and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Voya Solution and Astor Longshort 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 Solution and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Solution Moderately and Astor Longshort Fund, you can compare the effects of market volatilities on Voya Solution and Astor Longshort 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 Solution with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Astor Longshort.
Diversification Opportunities for Voya Solution and Astor Longshort
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Astor is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Moderately and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Voya Solution 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 Solution Moderately are associated (or correlated) with Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Voya Solution i.e., Voya Solution and Astor Longshort go up and down completely randomly.
Pair Corralation between Voya Solution and Astor Longshort
Assuming the 90 days horizon Voya Solution Moderately is expected to under-perform the Astor Longshort. In addition to that, Voya Solution is 1.55 times more volatile than Astor Longshort Fund. It trades about -0.04 of its total potential returns per unit of risk. Astor Longshort Fund is currently generating about -0.03 per unit of volatility. If you would invest 1,277 in Astor Longshort Fund on December 27, 2024 and sell it today you would lose (11.00) from holding Astor Longshort Fund or give up 0.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Voya Solution Moderately vs. Astor Longshort Fund
Performance |
Timeline |
Voya Solution Moderately |
Astor Longshort |
Voya Solution and Astor Longshort Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya Solution and Astor Longshort
The main advantage of trading using opposite Voya Solution and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution position performs unexpectedly, Astor Longshort 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 Astor Longshort will offset losses from the drop in Astor Longshort's long position.Voya Solution vs. Bmo In Retirement Fund | Voya Solution vs. Target Retirement 2040 | Voya Solution vs. T Rowe Price | Voya Solution vs. T Rowe Price |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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