Correlation Between Voya High and Usa Mutuals

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

By analyzing existing cross correlation between Voya High Yield and Usa Mutuals Navigator, you can compare the effects of market volatilities on Voya High and Usa Mutuals 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 High with a short position of Usa Mutuals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Usa Mutuals.

Diversification Opportunities for Voya High and Usa Mutuals

0.0

Correlation Coefficient

Voya High  Usa Mutuals

Pay attention - limited upside

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

Pair Corralation between Voya High and Usa Mutuals

If you would invest  757.00  in Voya High Yield on October 27, 2024 and sell it today you would earn a total of  119.00  from holding Voya High Yield or generate 15.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.33%
Values	Daily Returns

Voya High Yield  vs.  Usa Mutuals Navigator

Voya High Yield

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya High Yield are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Voya High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Usa Mutuals Navigator

Risk-Adjusted Performance

0 of 100

Modest

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

Pair Trading with Voya High and Usa Mutuals

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

The idea behind Voya High Yield and Usa Mutuals Navigator 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 CEOs Directory module to screen CEOs from public companies around the world.