Correlation Between Voya Index and Retirement Living
Can any of the company-specific risk be diversified away by investing in both Voya Index and Retirement Living 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 Index and Retirement Living into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Index Solution and Retirement Living Through, you can compare the effects of market volatilities on Voya Index and Retirement Living 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 Index with a short position of Retirement Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Retirement Living.
Diversification Opportunities for Voya Index and Retirement Living
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Voya and Retirement is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Solution and Retirement Living Through in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Living Through and Voya Index 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 Index Solution are associated (or correlated) with Retirement Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Living Through has no effect on the direction of Voya Index i.e., Voya Index and Retirement Living go up and down completely randomly.
Pair Corralation between Voya Index and Retirement Living
Assuming the 90 days horizon Voya Index Solution is expected to under-perform the Retirement Living. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Index Solution is 1.01 times less risky than Retirement Living. The mutual fund trades about -0.25 of its potential returns per unit of risk. The Retirement Living Through is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest 985.00 in Retirement Living Through on January 19, 2024 and sell it today you would lose (27.00) from holding Retirement Living Through or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Index Solution vs. Retirement Living Through
Performance |
| Timeline |
| Voya Index Solution |
| Retirement Living Through |
Voya Index and Retirement Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Retirement Living
The main advantage of trading using opposite Voya Index and Retirement Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Retirement Living 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 Retirement Living will offset losses from the drop in Retirement Living's long position.| Voya Index vs. American Funds 2035 | Voya Index vs. HUMANA INC | Voya Index vs. Aquagold International | Voya Index vs. Thrivent High Yield |
| Retirement Living vs. American Funds 2035 | Retirement Living vs. HUMANA INC | Retirement Living vs. Aquagold International | Retirement Living vs. Thrivent High Yield |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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