Correlation Between Voya Government and Voya Target
Can any of the company-specific risk be diversified away by investing in both Voya Government and Voya Target 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 Government and Voya Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Government Money and Voya Target Retirement, you can compare the effects of market volatilities on Voya Government and Voya Target 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 Government with a short position of Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Government and Voya Target.
Diversification Opportunities for Voya Government and Voya Target
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Voya and Voya is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Voya Government Money and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement and Voya Government 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 Government Money are associated (or correlated) with Voya Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of Voya Government i.e., Voya Government and Voya Target go up and down completely randomly.
Pair Corralation between Voya Government and Voya Target
If you would invest 1,330 in Voya Target Retirement on February 21, 2024 and sell it today you would earn a total of 69.00 from holding Voya Target Retirement or generate 5.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Voya Government Money vs. Voya Target Retirement
Performance |
Timeline |
Voya Government Money |
Voya Target Retirement |
Voya Government and Voya Target Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya Government and Voya Target
The main advantage of trading using opposite Voya Government and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Government position performs unexpectedly, Voya Target 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 Target will offset losses from the drop in Voya Target's long position.Voya Government vs. Vanguard Total Stock | Voya Government vs. Vanguard 500 Index | Voya Government vs. Vanguard Total Stock | Voya Government vs. Vanguard Total Stock |
Voya Target vs. Vanguard Target Retirement | Voya Target vs. Fidelity Freedom Index | Voya Target vs. HUMANA INC | Voya Target vs. Aquagold International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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