Correlation Between Voya Global and Alliancebernstein

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Can any of the company-specific risk be diversified away by investing in both Voya Global and Alliancebernstein 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 Global and Alliancebernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Equity and Alliancebernstein Global High, you can compare the effects of market volatilities on Voya Global and Alliancebernstein 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 Global with a short position of Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Alliancebernstein.

Diversification Opportunities for Voya Global and Alliancebernstein

0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between Voya and Alliancebernstein is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Equity and Alliancebernstein Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein and Voya Global 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 Global Equity are associated (or correlated) with Alliancebernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliancebernstein has no effect on the direction of Voya Global i.e., Voya Global and Alliancebernstein go up and down completely randomly.

Pair Corralation between Voya Global and Alliancebernstein

Considering the 90-day investment horizon Voya Global Equity is expected to generate 2.03 times more return on investment than Alliancebernstein. However, Voya Global is 2.03 times more volatile than Alliancebernstein Global High. It trades about 0.03 of its potential returns per unit of risk. Alliancebernstein Global High is currently generating about -0.02 per unit of risk. If you would invest  546.00  in Voya Global Equity on September 13, 2024 and sell it today you would earn a total of  7.00  from holding Voya Global Equity or generate 1.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Voya Global Equity  vs.  Alliancebernstein Global High

 Performance 
       Timeline  
Voya Global Equity 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Voya Global Equity are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound technical and fundamental indicators, Voya Global is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Alliancebernstein 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Alliancebernstein Global High has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Alliancebernstein is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Voya Global and Alliancebernstein Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Voya Global and Alliancebernstein

The main advantage of trading using opposite Voya Global and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Alliancebernstein 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 Alliancebernstein will offset losses from the drop in Alliancebernstein's long position.
The idea behind Voya Global Equity and Alliancebernstein Global High 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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