Correlation Between Voya Us and 655844CL0

Can any of the company-specific risk be diversified away by investing in both Voya Us and 655844CL0 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 655844CL0 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 NSC 29 25 AUG 51, you can compare the effects of market volatilities on Voya Us and 655844CL0 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 655844CL0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Us and 655844CL0.

Diversification Opportunities for Voya Us and 655844CL0

-0.16

Correlation Coefficient

Voya Us  655844CL0

Good diversification

The 3 months correlation between Voya and 655844CL0 is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Voya Stock Index and NSC 29 25 AUG 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSC 29 25 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 655844CL0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSC 29 25 has no effect on the direction of Voya Us i.e., Voya Us and 655844CL0 go up and down completely randomly.

Pair Corralation between Voya Us and 655844CL0

Assuming the 90 days horizon Voya Stock Index is expected to under-perform the 655844CL0. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Stock Index is 2.08 times less risky than 655844CL0. The mutual fund trades about -0.08 of its potential returns per unit of risk. The NSC 29 25 AUG 51 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  6,191  in NSC 29 25 AUG 51 on December 29, 2024 and sell it today you would earn a total of  660.00  from holding NSC 29 25 AUG 51 or generate 10.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	60.66%
Values	Daily Returns

Voya Stock Index  vs.  NSC 29 25 AUG 51

Voya Stock Index

Risk-Adjusted Performance

Very Weak

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 fundamental drivers, Voya Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

NSC 29 25

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NSC 29 25 AUG 51 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, 655844CL0 sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Voya Us and 655844CL0

The main advantage of trading using opposite Voya Us and 655844CL0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Us position performs unexpectedly, 655844CL0 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 655844CL0 will offset losses from the drop in 655844CL0's long position.

The idea behind Voya Stock Index and NSC 29 25 AUG 51 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.