Correlation Between Voya Us and Ivy Natural

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

By analyzing existing cross correlation between Voya Stock Index and Ivy Natural Resources, you can compare the effects of market volatilities on Voya Us and Ivy Natural 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 Ivy Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Us and Ivy Natural.

Diversification Opportunities for Voya Us and Ivy Natural

0.0

Correlation Coefficient

Voya Us  Ivy Natural

Pay attention - limited upside

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

Pair Corralation between Voya Us and Ivy Natural

If you would invest  0.00  in Voya Stock Index on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Voya Stock Index or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Voya Stock Index  vs.  Ivy Natural Resources

Voya Stock Index

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Voya Stock Index has generated negative risk-adjusted returns adding no value to fund investors. 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.

Ivy Natural Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ivy Natural Resources has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Voya Us and Ivy Natural

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

The idea behind Voya Stock Index and Ivy Natural Resources 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.