Correlation Between Voya Jpmorgan and Vy Oppenheimer

Can any of the company-specific risk be diversified away by investing in both Voya Jpmorgan and Vy Oppenheimer 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 Vy Oppenheimer 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 Vy Oppenheimer Global, you can compare the effects of market volatilities on Voya Jpmorgan and Vy Oppenheimer 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 Vy Oppenheimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Jpmorgan and Vy Oppenheimer.

Diversification Opportunities for Voya Jpmorgan and Vy Oppenheimer

-0.33

Correlation Coefficient

Voya Jpmorgan  Vy Oppenheimer

Very good diversification

The 3 months correlation between Voya and IOGPX is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Voya Jpmorgan Small and Vy Oppenheimer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Oppenheimer Global 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 Vy Oppenheimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Oppenheimer Global has no effect on the direction of Voya Jpmorgan i.e., Voya Jpmorgan and Vy Oppenheimer go up and down completely randomly.

Pair Corralation between Voya Jpmorgan and Vy Oppenheimer

Assuming the 90 days horizon Voya Jpmorgan Small is expected to generate 0.45 times more return on investment than Vy Oppenheimer. However, Voya Jpmorgan Small is 2.22 times less risky than Vy Oppenheimer. It trades about 0.01 of its potential returns per unit of risk. Vy Oppenheimer Global is currently generating about -0.11 per unit of risk. If you would invest  1,658  in Voya Jpmorgan Small on September 30, 2024 and sell it today you would lose (1.00) from holding Voya Jpmorgan Small or give up 0.06% of portfolio value over 90 days.

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

Voya Jpmorgan Small  vs.  Vy Oppenheimer Global

Voya Jpmorgan Small

Risk-Adjusted Performance

0 of 100

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 fairly strong basic indicators, Voya Jpmorgan is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Vy Oppenheimer Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vy Oppenheimer Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Voya Jpmorgan and Vy Oppenheimer

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

The idea behind Voya Jpmorgan Small and Vy Oppenheimer Global 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.