Correlation Between US Global and Voya Short

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

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

Diversification Opportunities for US Global and Voya Short

0.0

Correlation Coefficient

US Global  Voya Short

Pay attention - limited upside

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

Pair Corralation between US Global and Voya Short

If you would invest  1,794  in US Global Jets on January 19, 2024 and sell it today you would earn a total of  247.00  from holding US Global Jets or generate 13.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.44%
Values	Daily Returns

US Global Jets  vs.  Voya Short Term

US Global Jets

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in US Global Jets are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, US Global may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Voya Short Term

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with US Global and Voya Short

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

The idea behind US Global Jets and Voya Short Term 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.