Correlation Between Doubleline Yield and Voya Vacs

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

By analyzing existing cross correlation between Doubleline Yield Opportunities and Voya Vacs Index, you can compare the effects of market volatilities on Doubleline Yield and Voya Vacs 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 Doubleline Yield with a short position of Voya Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Yield and Voya Vacs.

Diversification Opportunities for Doubleline Yield and Voya Vacs

0.32

Correlation Coefficient

Doubleline Yield  Voya Vacs

Weak diversification

The 3 months correlation between Doubleline and Voya is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Yield Opportunities and Voya Vacs Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Index and Doubleline Yield 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 Doubleline Yield Opportunities are associated (or correlated) with Voya Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Index has no effect on the direction of Doubleline Yield i.e., Doubleline Yield and Voya Vacs go up and down completely randomly.

Pair Corralation between Doubleline Yield and Voya Vacs

Assuming the 90 days horizon Doubleline Yield is expected to generate 1.33 times less return on investment than Voya Vacs. But when comparing it to its historical volatility, Doubleline Yield Opportunities is 4.08 times less risky than Voya Vacs. It trades about 0.38 of its potential returns per unit of risk. Voya Vacs Index is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,155  in Voya Vacs Index on September 17, 2024 and sell it today you would earn a total of  14.00  from holding Voya Vacs Index or generate 1.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Doubleline Yield Opportunities  vs.  Voya Vacs Index

Doubleline Yield Opp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Voya Vacs Index

Risk-Adjusted Performance

2 of 100

Weak

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

Pair Trading with Doubleline Yield and Voya Vacs

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

The idea behind Doubleline Yield Opportunities and Voya Vacs Index 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..