Correlation Between Bruce Fund and Voya Solution

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

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

Diversification Opportunities for Bruce Fund and Voya Solution

-0.7

Correlation Coefficient

Bruce Fund  Voya Solution

Excellent diversification

The 3 months correlation between Bruce and Voya is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Voya Solution Moderately in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Moderately and Bruce Fund 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 Bruce Fund Bruce are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Moderately has no effect on the direction of Bruce Fund i.e., Bruce Fund and Voya Solution go up and down completely randomly.

Pair Corralation between Bruce Fund and Voya Solution

If you would invest  52,954  in Bruce Fund Bruce on September 17, 2024 and sell it today you would earn a total of  252.00  from holding Bruce Fund Bruce or generate 0.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	5.0%
Values	Daily Returns

Bruce Fund Bruce  vs.  Voya Solution Moderately

Bruce Fund Bruce

Risk-Adjusted Performance

0 of 100

Very Weak

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

Voya Solution Moderately

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bruce Fund and Voya Solution

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

The idea behind Bruce Fund Bruce and Voya Solution Moderately 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.