Correlation Between Voya International and Voya Midcap
Can any of the company-specific risk be diversified away by investing in both Voya International and Voya Midcap 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 International and Voya Midcap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya International Index and Voya Midcap Opportunities, you can compare the effects of market volatilities on Voya International and Voya Midcap 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 International with a short position of Voya Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya International and Voya Midcap.
Diversification Opportunities for Voya International and Voya Midcap
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Voya is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Voya International Index and Voya Midcap Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Midcap Opportunities and Voya International 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 International Index are associated (or correlated) with Voya Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Midcap Opportunities has no effect on the direction of Voya International i.e., Voya International and Voya Midcap go up and down completely randomly.
Pair Corralation between Voya International and Voya Midcap
Assuming the 90 days horizon Voya International Index is expected to under-perform the Voya Midcap. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya International Index is 1.78 times less risky than Voya Midcap. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Voya Midcap Opportunities is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 556.00 in Voya Midcap Opportunities on September 25, 2024 and sell it today you would earn a total of 46.00 from holding Voya Midcap Opportunities or generate 8.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 97.62% |
Values | Daily Returns |
Voya International Index vs. Voya Midcap Opportunities
Performance |
Timeline |
Voya International Index |
Voya Midcap Opportunities |
Voya International and Voya Midcap Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya International and Voya Midcap
The main advantage of trading using opposite Voya International and Voya Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya International position performs unexpectedly, Voya Midcap 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 Voya Midcap will offset losses from the drop in Voya Midcap's long position.Voya International vs. Voya Bond Index | Voya International vs. Voya Bond Index | Voya International vs. Voya Limited Maturity | Voya International vs. Voya Limited Maturity |
Voya Midcap vs. Voya Bond Index | Voya Midcap vs. Voya Bond Index | Voya Midcap vs. Voya Limited Maturity | Voya Midcap vs. Voya Limited Maturity |
Check out your portfolio center.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |