Correlation Between Pimco New and Voya Global

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

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

Diversification Opportunities for Pimco New and Voya Global

0.71

Correlation Coefficient

Pimco New  Voya Global

Poor diversification

The 3 months correlation between Pimco and Voya is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Pimco New York and Voya Global Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Advantage and Pimco New 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 Pimco New York are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Advantage has no effect on the direction of Pimco New i.e., Pimco New and Voya Global go up and down completely randomly.

Pair Corralation between Pimco New and Voya Global

Considering the 90-day investment horizon Pimco New is expected to generate 1.88 times less return on investment than Voya Global. But when comparing it to its historical volatility, Pimco New York is 1.11 times less risky than Voya Global. It trades about 0.11 of its potential returns per unit of risk. Voya Global Advantage is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  908.00  in Voya Global Advantage on December 27, 2024 and sell it today you would earn a total of  65.00  from holding Voya Global Advantage or generate 7.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Pimco New York  vs.  Voya Global Advantage

Pimco New York

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco New York are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Pimco New is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Voya Global Advantage

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Global Advantage are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent technical and fundamental indicators, Voya Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Pimco New and Voya Global

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

The idea behind Pimco New York and Voya Global Advantage 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.