Correlation Between Fisher Fixed and Voya Global

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

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

Diversification Opportunities for Fisher Fixed and Voya Global

0.72

Correlation Coefficient

Fisher Fixed  Voya Global

Poor diversification

The 3 months correlation between Fisher and Voya is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Fixed Income and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity and Fisher Fixed 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 Fisher Fixed Income 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 Equity has no effect on the direction of Fisher Fixed i.e., Fisher Fixed and Voya Global go up and down completely randomly.

Pair Corralation between Fisher Fixed and Voya Global

Assuming the 90 days horizon Fisher Fixed is expected to generate 3.66 times less return on investment than Voya Global. But when comparing it to its historical volatility, Fisher Fixed Income is 1.58 times less risky than Voya Global. It trades about 0.02 of its potential returns per unit of risk. Voya Global Equity is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,632  in Voya Global Equity on October 23, 2024 and sell it today you would earn a total of  619.00  from holding Voya Global Equity or generate 17.04% return on investment over 90 days.

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

Fisher Fixed Income  vs.  Voya Global Equity

Fisher Fixed Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fisher Fixed Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Fisher Fixed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya Global Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Global Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Voya Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fisher Fixed and Voya Global

The main advantage of trading using opposite Fisher Fixed and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Fixed 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 Fisher Fixed Income and Voya Global 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.