Correlation Between Voya Multi-manager and Voya Floating
Can any of the company-specific risk be diversified away by investing in both Voya Multi-manager and Voya Floating 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 Voya Floating 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 Voya Floating Rate, you can compare the effects of market volatilities on Voya Multi-manager and Voya Floating 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 Voya Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Multi-manager and Voya Floating.
Diversification Opportunities for Voya Multi-manager and Voya Floating
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Voya is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Voya Multi Manager Internation and Voya Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Floating Rate 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 Voya Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Floating Rate has no effect on the direction of Voya Multi-manager i.e., Voya Multi-manager and Voya Floating go up and down completely randomly.
Pair Corralation between Voya Multi-manager and Voya Floating
Assuming the 90 days horizon Voya Multi Manager International is expected to under-perform the Voya Floating. In addition to that, Voya Multi-manager is 11.88 times more volatile than Voya Floating Rate. It trades about -0.16 of its total potential returns per unit of risk. Voya Floating Rate is currently generating about 0.08 per unit of volatility. If you would invest 811.00 in Voya Floating Rate on October 6, 2024 and sell it today you would earn a total of 2.00 from holding Voya Floating Rate or generate 0.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Voya Multi Manager Internation vs. Voya Floating Rate
Performance |
Timeline |
Voya Multi Manager |
Voya Floating Rate |
Voya Multi-manager and Voya Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya Multi-manager and Voya Floating
The main advantage of trading using opposite Voya Multi-manager and Voya Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Multi-manager position performs unexpectedly, Voya Floating 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 Floating will offset losses from the drop in Voya Floating's long position.Voya Multi-manager vs. Voya Bond Index | Voya Multi-manager vs. Voya Bond Index | Voya Multi-manager vs. Voya Limited Maturity | Voya Multi-manager vs. Voya Limited Maturity |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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