Correlation Between Voya Global and Needham Aggressive

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

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

Diversification Opportunities for Voya Global and Needham Aggressive

0.0

Correlation Coefficient

Voya Global  Needham Aggressive

Pay attention - limited upside

The 3 months correlation between Voya and Needham is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global High and Needham Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Aggressive Growth and Voya Global 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 Global High are associated (or correlated) with Needham Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Aggressive Growth has no effect on the direction of Voya Global i.e., Voya Global and Needham Aggressive go up and down completely randomly.

Pair Corralation between Voya Global and Needham Aggressive

If you would invest  4,869  in Needham Aggressive Growth on September 21, 2024 and sell it today you would lose (3.00) from holding Needham Aggressive Growth or give up 0.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	74.6%
Values	Daily Returns

Voya Global High  vs.  Needham Aggressive Growth

Voya Global High

Risk-Adjusted Performance

0 of 100

Very Weak

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

Needham Aggressive Growth

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Voya Global and Needham Aggressive

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

The idea behind Voya Global High and Needham Aggressive Growth 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..