Correlation Between Voya Target and 361 Managed

Can any of the company-specific risk be diversified away by investing in both Voya Target and 361 Managed 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 Target and 361 Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Voya Target Retirement and 361 Managed Futures, you can compare the effects of market volatilities on Voya Target and 361 Managed 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 Target with a short position of 361 Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and 361 Managed.

Diversification Opportunities for Voya Target and 361 Managed

0.0

Correlation Coefficient

Voya Target  361 Managed

Pay attention - limited upside

The 3 months correlation between Voya and 361 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement and 361 Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Managed Futures and Voya Target 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 Target Retirement are associated (or correlated) with 361 Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Managed Futures has no effect on the direction of Voya Target i.e., Voya Target and 361 Managed go up and down completely randomly.

Pair Corralation between Voya Target and 361 Managed

If you would invest  1,365  in Voya Target Retirement on October 26, 2024 and sell it today you would earn a total of  7.00  from holding Voya Target Retirement or generate 0.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Voya Target Retirement  vs.  361 Managed Futures

Voya Target Retirement

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Target Retirement are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking indicators, Voya Target is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

361 Managed Futures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 361 Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, 361 Managed 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 Target and 361 Managed

The main advantage of trading using opposite Voya Target and 361 Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, 361 Managed 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 361 Managed will offset losses from the drop in 361 Managed's long position.

The idea behind Voya Target Retirement and 361 Managed Futures 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.