Correlation Between Voya Multi-manager and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Voya Multi-manager and Aim Investment 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 Multi-manager and Aim Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Multi Manager International and Aim Investment Securities, you can compare the effects of market volatilities on Voya Multi-manager and Aim Investment 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 Multi-manager with a short position of Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi-manager and Aim Investment.
Diversification Opportunities for Voya Multi-manager and Aim Investment
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Aim is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Voya Multi Manager Internation and Aim Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Securities and Voya Multi-manager 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 Multi Manager International are associated (or correlated) with Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Securities has no effect on the direction of Voya Multi-manager i.e., Voya Multi-manager and Aim Investment go up and down completely randomly.
Pair Corralation between Voya Multi-manager and Aim Investment
Assuming the 90 days horizon Voya Multi Manager International is expected to generate 0.25 times more return on investment than Aim Investment. However, Voya Multi Manager International is 4.05 times less risky than Aim Investment. It trades about 0.03 of its potential returns per unit of risk. Aim Investment Securities is currently generating about -0.04 per unit of risk. If you would invest 5,206 in Voya Multi Manager International on October 4, 2024 and sell it today you would earn a total of 609.00 from holding Voya Multi Manager International or generate 11.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.19% |
Values | Daily Returns |
Voya Multi Manager Internation vs. Aim Investment Securities
Performance |
Timeline |
Voya Multi Manager |
Aim Investment Securities |
Voya Multi-manager and Aim Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya Multi-manager and Aim Investment
The main advantage of trading using opposite Voya Multi-manager and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi-manager position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment's long position.Voya Multi-manager vs. Aqr Long Short Equity | Voya Multi-manager vs. Artisan Emerging Markets | Voya Multi-manager vs. Western Asset Diversified | Voya Multi-manager vs. Doubleline Emerging Markets |
Aim Investment vs. Morningstar Aggressive Growth | Aim Investment vs. T Rowe Price | Aim Investment vs. Pioneer High Yield | Aim Investment vs. Alliancebernstein Global High |
Check out your portfolio center.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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