Correlation Between Voya Multi and Voya Equity

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

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

Diversification Opportunities for Voya Multi and Voya Equity

0.0

Correlation Coefficient

Voya Multi  Voya Equity

Pay attention - limited upside

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

Pair Corralation between Voya Multi and Voya Equity

If you would invest (100.00) in Voya Equity Trust on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Voya Equity Trust or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Voya Multi Manager Internation  vs.  Voya Equity Trust

Voya Multi Manager

Risk-Adjusted Performance

Very Weak

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

Voya Equity Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Voya Equity Trust has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Voya Equity 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 Multi and Voya Equity

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

The idea behind Voya Multi Manager International and Voya Equity Trust 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.