Correlation Between Voya Asia and Dividend Growth

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

By analyzing existing cross correlation between Voya Asia Pacific and Dividend Growth Split, you can compare the effects of market volatilities on Voya Asia and Dividend Growth 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 Asia with a short position of Dividend Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Asia and Dividend Growth.

Diversification Opportunities for Voya Asia and Dividend Growth

0.38

Correlation Coefficient

Voya Asia  Dividend Growth

Weak diversification

The 3 months correlation between Voya and Dividend is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Voya Asia Pacific and Dividend Growth Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend Growth Split and Voya Asia 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 Asia Pacific are associated (or correlated) with Dividend Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend Growth Split has no effect on the direction of Voya Asia i.e., Voya Asia and Dividend Growth go up and down completely randomly.

Pair Corralation between Voya Asia and Dividend Growth

If you would invest  633.00  in Voya Asia Pacific on September 1, 2024 and sell it today you would lose (2.00) from holding Voya Asia Pacific or give up 0.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Voya Asia Pacific  vs.  Dividend Growth Split

Voya Asia Pacific

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Asia Pacific has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound basic indicators, Voya Asia is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Dividend Growth Split

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dividend Growth Split has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Dividend Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Voya Asia and Dividend Growth

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

The idea behind Voya Asia Pacific and Dividend Growth Split 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.