Correlation Between Voya Us and Vy(r) Jpmorgan

Can any of the company-specific risk be diversified away by investing in both Voya Us and Vy(r) Jpmorgan 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 Us and Vy(r) Jpmorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Voya Bond Index and Vy Jpmorgan Small, you can compare the effects of market volatilities on Voya Us and Vy(r) Jpmorgan 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 Us with a short position of Vy(r) Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Us and Vy(r) Jpmorgan.

Diversification Opportunities for Voya Us and Vy(r) Jpmorgan

0.01

Correlation Coefficient

Voya Us  Vy(r) Jpmorgan

Significant diversification

The 3 months correlation between Voya and Vy(r) is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Voya Bond Index and Vy Jpmorgan Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Jpmorgan Small and Voya Us 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 Bond Index are associated (or correlated) with Vy(r) Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Jpmorgan Small has no effect on the direction of Voya Us i.e., Voya Us and Vy(r) Jpmorgan go up and down completely randomly.

Pair Corralation between Voya Us and Vy(r) Jpmorgan

Assuming the 90 days horizon Voya Bond Index is expected to generate 0.32 times more return on investment than Vy(r) Jpmorgan. However, Voya Bond Index is 3.16 times less risky than Vy(r) Jpmorgan. It trades about 0.2 of its potential returns per unit of risk. Vy Jpmorgan Small is currently generating about -0.49 per unit of risk. If you would invest  898.00  in Voya Bond Index on December 10, 2024 and sell it today you would earn a total of  13.00  from holding Voya Bond Index or generate 1.45% return on investment over 90 days.

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

Voya Bond Index  vs.  Vy Jpmorgan Small

Voya Bond Index

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Bond Index are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Voya Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Vy Jpmorgan Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vy Jpmorgan Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Voya Us and Vy(r) Jpmorgan

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

The idea behind Voya Bond Index and Vy Jpmorgan Small 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.