Correlation Between Voya Global and Aberdeen Asia

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

Diversification Opportunities for Voya Global and Aberdeen Asia

0.88

Correlation Coefficient

Voya Global  Aberdeen Asia

Very poor diversification

The 3 months correlation between Voya and Aberdeen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Equity and Aberdeen Asia Pacific If in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Asia Pacific 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 Aberdeen Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Asia Pacific has no effect on the direction of Voya Global i.e., Voya Global and Aberdeen Asia go up and down completely randomly.

Pair Corralation between Voya Global and Aberdeen Asia

Considering the 90-day investment horizon Voya Global is expected to generate 1.21 times less return on investment than Aberdeen Asia. In addition to that, Voya Global is 1.24 times more volatile than Aberdeen Asia Pacific If. It trades about 0.15 of its total potential returns per unit of risk. Aberdeen Asia Pacific If is currently generating about 0.23 per unit of volatility. If you would invest  1,444  in Aberdeen Asia Pacific If on December 27, 2024 and sell it today you would earn a total of  120.00  from holding Aberdeen Asia Pacific If or generate 8.31% return on investment over 90 days.

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

Voya Global Equity  vs.  Aberdeen Asia Pacific If

Voya Global Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Global Equity are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Voya Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Aberdeen Asia Pacific

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aberdeen Asia Pacific If are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly fragile basic indicators, Aberdeen Asia may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Voya Global and Aberdeen Asia

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

The idea behind Voya Global Equity and Aberdeen Asia Pacific If 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.