Correlation Between Voya Russia and Dynamic International

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

By analyzing existing cross correlation between Voya Russia Fund and Dynamic International Opportunity, you can compare the effects of market volatilities on Voya Russia and Dynamic International 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 Russia with a short position of Dynamic International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Russia and Dynamic International.

Diversification Opportunities for Voya Russia and Dynamic International

0.0

Correlation Coefficient

Voya Russia  Dynamic International

Pay attention - limited upside

The 3 months correlation between Voya and Dynamic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and Dynamic International Opportun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynamic International and Voya Russia 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 Russia Fund are associated (or correlated) with Dynamic International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynamic International has no effect on the direction of Voya Russia i.e., Voya Russia and Dynamic International go up and down completely randomly.

Pair Corralation between Voya Russia and Dynamic International

If you would invest  1,172  in Dynamic International Opportunity on December 20, 2024 and sell it today you would earn a total of  88.00  from holding Dynamic International Opportunity or generate 7.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Voya Russia Fund  vs.  Dynamic International Opportun

Voya Russia Fund

Risk-Adjusted Performance

Very Weak

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

Dynamic International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dynamic International Opportunity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Dynamic International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Voya Russia and Dynamic International

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

The idea behind Voya Russia Fund and Dynamic International Opportunity 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.