Correlation Between Voya Corporate and Guggenheim Market

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

By analyzing existing cross correlation between Voya Corporate Leaders and Guggenheim Market Neutral, you can compare the effects of market volatilities on Voya Corporate and Guggenheim Market 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 Corporate with a short position of Guggenheim Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Corporate and Guggenheim Market.

Diversification Opportunities for Voya Corporate and Guggenheim Market

0.0

Correlation Coefficient

Voya Corporate  Guggenheim Market

Pay attention - limited upside

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

Pair Corralation between Voya Corporate and Guggenheim Market

If you would invest  2,134  in Guggenheim Market Neutral on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Guggenheim Market Neutral or generate 0.0% return on investment over 90 days.

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

Voya Corporate Leaders  vs.  Guggenheim Market Neutral

Voya Corporate Leaders

Risk-Adjusted Performance

Very Weak

Over the last 90 days Voya Corporate Leaders has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Voya Corporate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Guggenheim Market Neutral

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guggenheim Market Neutral has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Guggenheim Market 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 Corporate and Guggenheim Market

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

The idea behind Voya Corporate Leaders and Guggenheim Market Neutral 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.