Correlation Between Nuveen Core and Voya Global

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

By analyzing existing cross correlation between Nuveen Core Equity and Voya Global Equity, you can compare the effects of market volatilities on Nuveen Core and Voya Global 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 Nuveen Core with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Core and Voya Global.

Diversification Opportunities for Nuveen Core and Voya Global

-0.63

Correlation Coefficient

Nuveen Core  Voya Global

Excellent diversification

The 3 months correlation between Nuveen and Voya is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Core Equity and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity and Nuveen Core 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 Nuveen Core Equity are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Nuveen Core i.e., Nuveen Core and Voya Global go up and down completely randomly.

Pair Corralation between Nuveen Core and Voya Global

Considering the 90-day investment horizon Nuveen Core Equity is expected to under-perform the Voya Global. In addition to that, Nuveen Core is 1.25 times more volatile than Voya Global Equity. It trades about -0.08 of its total potential returns per unit of risk. Voya Global Equity is currently generating about 0.14 per unit of volatility. If you would invest  536.00  in Voya Global Equity on December 27, 2024 and sell it today you would earn a total of  34.00  from holding Voya Global Equity or generate 6.34% return on investment over 90 days.

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

Nuveen Core Equity  vs.  Voya Global Equity

Nuveen Core Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuveen Core Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound fundamental indicators, Nuveen Core is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Voya Global Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Global Equity are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Voya Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Nuveen Core and Voya Global

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

The idea behind Nuveen Core Equity and Voya Global Equity 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.