Correlation Between Voya Solution and Multisector Bond

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

By analyzing existing cross correlation between Voya Solution Aggressive and Multisector Bond Sma, you can compare the effects of market volatilities on Voya Solution and Multisector Bond 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 Solution with a short position of Multisector Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Multisector Bond.

Diversification Opportunities for Voya Solution and Multisector Bond

0.0

Correlation Coefficient

Voya Solution  Multisector Bond

Pay attention - limited upside

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

Pair Corralation between Voya Solution and Multisector Bond

If you would invest (100.00) in Voya Solution Aggressive on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Voya Solution Aggressive or generate -100.0% return on investment over 90 days.

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

Voya Solution Aggressive  vs.  Multisector Bond Sma

Voya Solution Aggressive

Risk-Adjusted Performance

0 of 100

Weak

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

Multisector Bond Sma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Multisector Bond Sma has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Multisector Bond 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 Solution and Multisector Bond

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

The idea behind Voya Solution Aggressive and Multisector Bond Sma 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.