Correlation Between Voya Securitized and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Voya Securitized and Dow Jones 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 Securitized and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Securitized Credit and Dow Jones Industrial, you can compare the effects of market volatilities on Voya Securitized and Dow Jones 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 Securitized with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Securitized and Dow Jones.
Diversification Opportunities for Voya Securitized and Dow Jones
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Dow is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Voya Securitized Credit and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Voya Securitized 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 Securitized Credit are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Voya Securitized i.e., Voya Securitized and Dow Jones go up and down completely randomly.
Pair Corralation between Voya Securitized and Dow Jones
Assuming the 90 days horizon Voya Securitized Credit is expected to generate 0.22 times more return on investment than Dow Jones. However, Voya Securitized Credit is 4.65 times less risky than Dow Jones. It trades about 0.41 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.18 per unit of risk. If you would invest 951.00 in Voya Securitized Credit on December 4, 2024 and sell it today you would earn a total of 13.00 from holding Voya Securitized Credit or generate 1.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Voya Securitized Credit vs. Dow Jones Industrial
Performance |
Timeline |
Voya Securitized and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Voya Securitized Credit
Pair trading matchups for Voya Securitized
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Voya Securitized and Dow Jones
The main advantage of trading using opposite Voya Securitized and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Securitized position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Voya Securitized vs. Goldman Sachs Financial | Voya Securitized vs. Gabelli Global Financial | Voya Securitized vs. Rmb Mendon Financial | Voya Securitized vs. Financial Industries Fund |
Dow Jones vs. Balchem | Dow Jones vs. Merit Medical Systems | Dow Jones vs. American Vanguard | Dow Jones vs. Regeneron Pharmaceuticals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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