Correlation Between Voya Index and Voya Target

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Voya Index 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 Index 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 Index Solution and Voya Target Retirement, you can compare the effects of market volatilities on Voya Index 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 Index with a short position of Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Voya Target.

Diversification Opportunities for Voya Index and Voya Target

0.96
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Voya and Voya is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Solution 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 Index 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 Index Solution 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 Index i.e., Voya Index and Voya Target go up and down completely randomly.

Pair Corralation between Voya Index and Voya Target

Assuming the 90 days horizon Voya Index Solution is expected to generate 1.31 times more return on investment than Voya Target. However, Voya Index is 1.31 times more volatile than Voya Target Retirement. It trades about 0.11 of its potential returns per unit of risk. Voya Target Retirement is currently generating about 0.09 per unit of risk. If you would invest  1,583  in Voya Index Solution on September 17, 2024 and sell it today you would earn a total of  65.00  from holding Voya Index Solution or generate 4.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Voya Index Solution  vs.  Voya Target Retirement

 Performance 
       Timeline  
Voya Index Solution 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Voya Index Solution are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Voya Index is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Voya Target Retirement 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Voya Target Retirement are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Voya Target is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya Index and Voya Target Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Voya Index and Voya Target

The main advantage of trading using opposite Voya Index and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index 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.
The idea behind Voya Index Solution and Voya Target Retirement 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.
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.