Correlation Between Vy Franklin and Voya High
Can any of the company-specific risk be diversified away by investing in both Vy Franklin and Voya High 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 Vy Franklin and Voya High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vy Franklin Income and Voya High Yield, you can compare the effects of market volatilities on Vy Franklin and Voya High 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 Vy Franklin with a short position of Voya High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy Franklin and Voya High.
Diversification Opportunities for Vy Franklin and Voya High
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IIFIX and Voya is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vy Franklin Income and Voya High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya High Yield and Vy Franklin 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 Vy Franklin Income are associated (or correlated) with Voya High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya High Yield has no effect on the direction of Vy Franklin i.e., Vy Franklin and Voya High go up and down completely randomly.
Pair Corralation between Vy Franklin and Voya High
Assuming the 90 days horizon Vy Franklin Income is expected to generate 2.53 times more return on investment than Voya High. However, Vy Franklin is 2.53 times more volatile than Voya High Yield. It trades about -0.01 of its potential returns per unit of risk. Voya High Yield is currently generating about -0.24 per unit of risk. If you would invest 1,026 in Vy Franklin Income on September 26, 2024 and sell it today you would lose (1.00) from holding Vy Franklin Income or give up 0.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Vy Franklin Income vs. Voya High Yield
Performance |
Timeline |
Vy Franklin Income |
Voya High Yield |
Vy Franklin and Voya High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vy Franklin and Voya High
The main advantage of trading using opposite Vy Franklin and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Franklin position performs unexpectedly, Voya High 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 High will offset losses from the drop in Voya High's long position.Vy Franklin vs. Voya High Yield | Vy Franklin vs. Inverse High Yield | Vy Franklin vs. Alpine High Yield | Vy Franklin vs. Guggenheim High Yield |
Voya High vs. Voya Bond Index | Voya High vs. Voya Bond Index | Voya High vs. Voya Limited Maturity | Voya High vs. Voya Limited Maturity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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