Correlation Between Voya Solution and Jhancock Disciplined

Can any of the company-specific risk be diversified away by investing in both Voya Solution and Jhancock Disciplined 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 Jhancock Disciplined 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 Jhancock Disciplined Value, you can compare the effects of market volatilities on Voya Solution and Jhancock Disciplined 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 Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Jhancock Disciplined.

Diversification Opportunities for Voya Solution and Jhancock Disciplined

0.96

Correlation Coefficient

Voya Solution  Jhancock Disciplined

Almost no diversification

The 3 months correlation between Voya and Jhancock is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Moderately and Jhancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined 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 Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of Voya Solution i.e., Voya Solution and Jhancock Disciplined go up and down completely randomly.

Pair Corralation between Voya Solution and Jhancock Disciplined

Assuming the 90 days horizon Voya Solution Moderately is expected to under-perform the Jhancock Disciplined. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Solution Moderately is 1.12 times less risky than Jhancock Disciplined. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Jhancock Disciplined Value is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  2,249  in Jhancock Disciplined Value on December 29, 2024 and sell it today you would lose (14.00) from holding Jhancock Disciplined Value or give up 0.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Voya Solution Moderately  vs.  Jhancock Disciplined Value

Voya Solution Moderately

Risk-Adjusted Performance

Very Weak

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

Jhancock Disciplined

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Voya Solution and Jhancock Disciplined

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

The idea behind Voya Solution Moderately and Jhancock Disciplined Value 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.