Correlation Between Voya Solution and Voya Multi
Can any of the company-specific risk be diversified away by investing in both Voya Solution and Voya Multi 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 Voya Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Solution Aggressive and Voya Multi Manager Mid, you can compare the effects of market volatilities on Voya Solution and Voya Multi 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 Voya Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Voya Multi.
Diversification Opportunities for Voya Solution and Voya Multi
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Voya and Voya is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Aggressive and Voya Multi Manager Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Aggressive are associated (or correlated) with Voya Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Voya Solution i.e., Voya Solution and Voya Multi go up and down completely randomly.
Pair Corralation between Voya Solution and Voya Multi
Assuming the 90 days horizon Voya Solution Aggressive is expected to generate 0.31 times more return on investment than Voya Multi. However, Voya Solution Aggressive is 3.2 times less risky than Voya Multi. It trades about -0.15 of its potential returns per unit of risk. Voya Multi Manager Mid is currently generating about -0.36 per unit of risk. If you would invest 1,520 in Voya Solution Aggressive on September 24, 2024 and sell it today you would lose (34.00) from holding Voya Solution Aggressive or give up 2.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Voya Solution Aggressive vs. Voya Multi Manager Mid
Performance |
Timeline |
Voya Solution Aggressive |
Voya Multi Manager |
Voya Solution and Voya Multi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya Solution and Voya Multi
The main advantage of trading using opposite Voya Solution and Voya Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution position performs unexpectedly, Voya Multi 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 Multi will offset losses from the drop in Voya Multi's long position.Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Limited Maturity | Voya Solution vs. Voya Limited Maturity |
Voya Multi vs. Voya Bond Index | Voya Multi vs. Voya Bond Index | Voya Multi vs. Voya Limited Maturity | Voya Multi vs. Voya Limited Maturity |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |