Correlation Between Voya Russia and Spirit Of

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

Diversification Opportunities for Voya Russia and Spirit Of

0.73

Correlation Coefficient

Voya Russia  Spirit Of

Poor diversification

The 3 months correlation between Voya and Spirit is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and Spirit Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirit Of America 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 Spirit Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirit Of America has no effect on the direction of Voya Russia i.e., Voya Russia and Spirit Of go up and down completely randomly.

Pair Corralation between Voya Russia and Spirit Of

If you would invest  3,521  in Spirit Of America on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Spirit Of America or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

Voya Russia Fund  vs.  Spirit Of America

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.

Spirit Of America

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Spirit Of America are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Spirit Of may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Voya Russia and Spirit Of

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

The idea behind Voya Russia Fund and Spirit Of America 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 CEOs Directory module to screen CEOs from public companies around the world.