Correlation Between Voya Russia and Brookfield Global

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

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

Diversification Opportunities for Voya Russia and Brookfield Global

-0.72

Correlation Coefficient

Voya Russia  Brookfield Global

Pay attention - limited upside

The 3 months correlation between Voya and Brookfield is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and Brookfield Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Global Listed and Voya Russia 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 Russia Fund are associated (or correlated) with Brookfield Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Global Listed has no effect on the direction of Voya Russia i.e., Voya Russia and Brookfield Global go up and down completely randomly.

Pair Corralation between Voya Russia and Brookfield Global

Assuming the 90 days horizon Voya Russia Fund is expected to generate 0.79 times more return on investment than Brookfield Global. However, Voya Russia Fund is 1.27 times less risky than Brookfield Global. It trades about 0.5 of its potential returns per unit of risk. Brookfield Global Listed is currently generating about 0.02 per unit of risk. If you would invest  67.00  in Voya Russia Fund on September 12, 2024 and sell it today you would earn a total of  1.00  from holding Voya Russia Fund or generate 1.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.13%
Values	Daily Returns

Voya Russia Fund  vs.  Brookfield Global Listed

Voya Russia Fund

Risk-Adjusted Performance

0 of 100

Very Weak

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

Brookfield Global Listed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brookfield Global Listed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Brookfield Global 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 Russia and Brookfield Global

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

The idea behind Voya Russia Fund and Brookfield Global Listed 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.