Correlation Between Voya Target and Aegis Value
Can any of the company-specific risk be diversified away by investing in both Voya Target and Aegis Value 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 Aegis Value 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 Aegis Value Fund, you can compare the effects of market volatilities on Voya Target and Aegis Value 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 Aegis Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and Aegis Value.
Diversification Opportunities for Voya Target and Aegis Value
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Voya and Aegis is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement and Aegis Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegis Value Fund 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 Aegis Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegis Value Fund has no effect on the direction of Voya Target i.e., Voya Target and Aegis Value go up and down completely randomly.
Pair Corralation between Voya Target and Aegis Value
Assuming the 90 days horizon Voya Target is expected to generate 4.96 times less return on investment than Aegis Value. But when comparing it to its historical volatility, Voya Target Retirement is 1.01 times less risky than Aegis Value. It trades about 0.12 of its potential returns per unit of risk. Aegis Value Fund is currently generating about 0.58 of returns per unit of risk over similar time horizon. If you would invest 3,556 in Aegis Value Fund on October 26, 2024 and sell it today you would earn a total of 246.00 from holding Aegis Value Fund or generate 6.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Voya Target Retirement vs. Aegis Value Fund
Performance |
Timeline |
Voya Target Retirement |
Aegis Value Fund |
Voya Target and Aegis Value Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya Target and Aegis Value
The main advantage of trading using opposite Voya Target and Aegis Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, Aegis Value 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 Aegis Value will offset losses from the drop in Aegis Value's long position.Voya Target vs. Voya Bond Index | Voya Target vs. Voya Bond Index | Voya Target vs. Voya Limited Maturity | Voya Target vs. Voya Limited Maturity |
Aegis Value vs. Blrc Sgy Mnp | Aegis Value vs. Nuveen Strategic Municipal | Aegis Value vs. Old Westbury Municipal | Aegis Value vs. Blackrock Pa Muni |
Check out your portfolio center.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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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