Correlation Between Voya Floating and Black Oak

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

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

Diversification Opportunities for Voya Floating and Black Oak

0.42

Correlation Coefficient

Voya Floating  Black Oak

Very weak diversification

The 3 months correlation between Voya and Black is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Voya Floating Rate and Black Oak Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Oak Emerging and Voya Floating 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 Floating Rate are associated (or correlated) with Black Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Oak Emerging has no effect on the direction of Voya Floating i.e., Voya Floating and Black Oak go up and down completely randomly.

Pair Corralation between Voya Floating and Black Oak

If you would invest  0.00  in Voya Floating Rate on October 23, 2024 and sell it today you would earn a total of  0.00  from holding Voya Floating Rate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.67%
Values	Daily Returns

Voya Floating Rate  vs.  Black Oak Emerging

Voya Floating Rate

Risk-Adjusted Performance

0 of 100

Very Weak

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

Black Oak Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Black Oak Emerging has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Black Oak 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 Floating and Black Oak

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

The idea behind Voya Floating Rate and Black Oak 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.