Correlation Between Voya Short and Intermediate Bond

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

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

Diversification Opportunities for Voya Short and Intermediate Bond

0.0

Correlation Coefficient

Voya Short  Intermediate Bond

Pay attention - limited upside

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

Pair Corralation between Voya Short and Intermediate Bond

If you would invest  907.00  in Voya Short Term on January 20, 2024 and sell it today you would earn a total of  0.00  from holding Voya Short Term or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Voya Short Term  vs.  Intermediate Bond Fund

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.

Intermediate Bond

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intermediate Bond Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Intermediate 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 Short and Intermediate Bond

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

The idea behind Voya Short Term and Intermediate Bond Fund 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.