Correlation Between Voya Midcap and Vy Clarion

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

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

Diversification Opportunities for Voya Midcap and Vy Clarion

0.92

Correlation Coefficient

Voya Midcap  Vy Clarion

Almost no diversification

The 3 months correlation between Voya and IRGIX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Voya Midcap Opportunities and Vy Clarion Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Clarion Global and Voya Midcap 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 Midcap Opportunities are associated (or correlated) with Vy Clarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Clarion Global has no effect on the direction of Voya Midcap i.e., Voya Midcap and Vy Clarion go up and down completely randomly.

Pair Corralation between Voya Midcap and Vy Clarion

Assuming the 90 days horizon Voya Midcap Opportunities is expected to generate 1.67 times more return on investment than Vy Clarion. However, Voya Midcap is 1.67 times more volatile than Vy Clarion Global. It trades about 0.28 of its potential returns per unit of risk. Vy Clarion Global is currently generating about 0.22 per unit of risk. If you would invest  318.00  in Voya Midcap Opportunities on April 10, 2025 and sell it today you would earn a total of  73.00  from holding Voya Midcap Opportunities or generate 22.96% return on investment over 90 days.

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

Voya Midcap Opportunities  vs.  Vy Clarion Global

Voya Midcap Opportunities

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Midcap Opportunities are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Voya Midcap showed solid returns over the last few months and may actually be approaching a breakup point.

Vy Clarion Global

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Clarion Global are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Vy Clarion may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Voya Midcap and Vy Clarion

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

The idea behind Voya Midcap Opportunities and Vy Clarion Global 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.