Correlation Between Voya Russia and Counterpoint Tactical

Can any of the company-specific risk be diversified away by investing in both Voya Russia and Counterpoint Tactical 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 Counterpoint Tactical 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 Counterpoint Tactical Equity, you can compare the effects of market volatilities on Voya Russia and Counterpoint Tactical 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 Counterpoint Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Russia and Counterpoint Tactical.

Diversification Opportunities for Voya Russia and Counterpoint Tactical

0.65

Correlation Coefficient

Voya Russia  Counterpoint Tactical

Poor diversification

The 3 months correlation between Voya and Counterpoint is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and Counterpoint Tactical Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Counterpoint Tactical 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 Counterpoint Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Counterpoint Tactical has no effect on the direction of Voya Russia i.e., Voya Russia and Counterpoint Tactical go up and down completely randomly.

Pair Corralation between Voya Russia and Counterpoint Tactical

If you would invest  1,950  in Counterpoint Tactical Equity on September 16, 2024 and sell it today you would earn a total of  196.00  from holding Counterpoint Tactical Equity or generate 10.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.54%
Values	Daily Returns

Voya Russia Fund  vs.  Counterpoint Tactical Equity

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.

Counterpoint Tactical

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Counterpoint Tactical Equity are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Counterpoint Tactical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Voya Russia and Counterpoint Tactical

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

The idea behind Voya Russia Fund and Counterpoint Tactical 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.