Correlation Between City National and Voya Russia
Can any of the company-specific risk be diversified away by investing in both City National and Voya Russia 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 City National and Voya Russia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Voya Russia Fund, you can compare the effects of market volatilities on City National and Voya Russia 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 City National with a short position of Voya Russia. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Voya Russia.
Diversification Opportunities for City National and Voya Russia
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between City and Voya is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Voya Russia Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Russia Fund and City National 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 City National Rochdale are associated (or correlated) with Voya Russia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Russia Fund has no effect on the direction of City National i.e., City National and Voya Russia go up and down completely randomly.
Pair Corralation between City National and Voya Russia
Assuming the 90 days horizon City National is expected to generate 18.69 times less return on investment than Voya Russia. But when comparing it to its historical volatility, City National Rochdale is 57.05 times less risky than Voya Russia. It trades about 0.24 of its potential returns per unit of risk. Voya Russia Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Voya Russia Fund on September 23, 2024 and sell it today you would earn a total of 33.00 from holding Voya Russia Fund or generate 84.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 27.97% |
Values | Daily Returns |
City National Rochdale vs. Voya Russia Fund
Performance |
Timeline |
City National Rochdale |
Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
City National and Voya Russia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with City National and Voya Russia
The main advantage of trading using opposite City National and Voya Russia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Voya Russia 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 Russia will offset losses from the drop in Voya Russia's long position.City National vs. City National Rochdale | City National vs. City National Rochdale | City National vs. City National Rochdale | City National vs. City National Rochdale |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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