Correlation Between Voya Jpmorgan and Voya International

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

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

Diversification Opportunities for Voya Jpmorgan and Voya International

-0.6

Correlation Coefficient

Voya Jpmorgan  Voya International

Excellent diversification

The 3 months correlation between Voya and Voya is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Voya Jpmorgan Small and Voya International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya International Index and Voya Jpmorgan 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 Jpmorgan Small are associated (or correlated) with Voya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya International Index has no effect on the direction of Voya Jpmorgan i.e., Voya Jpmorgan and Voya International go up and down completely randomly.

Pair Corralation between Voya Jpmorgan and Voya International

Assuming the 90 days horizon Voya Jpmorgan Small is expected to under-perform the Voya International. In addition to that, Voya Jpmorgan is 1.24 times more volatile than Voya International Index. It trades about -0.1 of its total potential returns per unit of risk. Voya International Index is currently generating about 0.18 per unit of volatility. If you would invest  1,104  in Voya International Index on December 28, 2024 and sell it today you would earn a total of  108.00  from holding Voya International Index or generate 9.78% return on investment over 90 days.

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

Voya Jpmorgan Small  vs.  Voya International Index

Voya Jpmorgan Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Voya Jpmorgan Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Voya International Index

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya International Index are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Voya International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Voya Jpmorgan and Voya International

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

The idea behind Voya Jpmorgan Small and Voya International Index 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.