Correlation Between Voya Vacs and Mirova Global

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

By analyzing existing cross correlation between Voya Vacs Series and Mirova Global Green, you can compare the effects of market volatilities on Voya Vacs and Mirova Global 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 Vacs with a short position of Mirova Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Vacs and Mirova Global.

Diversification Opportunities for Voya Vacs and Mirova Global

0.34

Correlation Coefficient

Voya Vacs  Mirova Global

Weak diversification

The 3 months correlation between Voya and Mirova is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Voya Vacs Series and Mirova Global Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirova Global Green and Voya Vacs 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 Vacs Series are associated (or correlated) with Mirova Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirova Global Green has no effect on the direction of Voya Vacs i.e., Voya Vacs and Mirova Global go up and down completely randomly.

Pair Corralation between Voya Vacs and Mirova Global

Assuming the 90 days horizon Voya Vacs is expected to generate 1.01 times less return on investment than Mirova Global. In addition to that, Voya Vacs is 2.61 times more volatile than Mirova Global Green. It trades about 0.01 of its total potential returns per unit of risk. Mirova Global Green is currently generating about 0.03 per unit of volatility. If you would invest  811.00  in Mirova Global Green on October 11, 2024 and sell it today you would earn a total of  45.00  from holding Mirova Global Green or generate 5.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	74.55%
Values	Daily Returns

Voya Vacs Series  vs.  Mirova Global Green

Voya Vacs Series

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Vacs Series 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 technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Mirova Global Green

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mirova Global Green has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mirova Global 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 Vacs and Mirova Global

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

The idea behind Voya Vacs Series and Mirova Global Green 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.