Correlation Between Vanguard Windsor and Voya Limited

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

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

Diversification Opportunities for Vanguard Windsor and Voya Limited

-0.14

Correlation Coefficient

Vanguard Windsor  Voya Limited

Good diversification

The 3 months correlation between VANGUARD and Voya is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Windsor Fund and Voya Limited Maturity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Limited Maturity and Vanguard Windsor 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 Vanguard Windsor Fund are associated (or correlated) with Voya Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Limited Maturity has no effect on the direction of Vanguard Windsor i.e., Vanguard Windsor and Voya Limited go up and down completely randomly.

Pair Corralation between Vanguard Windsor and Voya Limited

Assuming the 90 days horizon Vanguard Windsor Fund is expected to generate 5.69 times more return on investment than Voya Limited. However, Vanguard Windsor is 5.69 times more volatile than Voya Limited Maturity. It trades about 0.15 of its potential returns per unit of risk. Voya Limited Maturity is currently generating about 0.03 per unit of risk. If you would invest  2,321  in Vanguard Windsor Fund on September 4, 2024 and sell it today you would earn a total of  165.00  from holding Vanguard Windsor Fund or generate 7.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Vanguard Windsor Fund  vs.  Voya Limited Maturity

Vanguard Windsor

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Windsor Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Vanguard Windsor may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Voya Limited Maturity

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Limited Maturity are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Voya Limited is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vanguard Windsor and Voya Limited

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

The idea behind Vanguard Windsor Fund and Voya Limited Maturity 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.