Correlation Between Vy(r) Oppenheimer and Voya Target

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

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

Diversification Opportunities for Vy(r) Oppenheimer and Voya Target

0.98

Correlation Coefficient

Vy(r) Oppenheimer  Voya Target

Almost no diversification

The 3 months correlation between Vy(r) and Voya is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Vy Oppenheimer Global 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 Vy(r) Oppenheimer 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 Oppenheimer Global 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 Vy(r) Oppenheimer i.e., Vy(r) Oppenheimer and Voya Target go up and down completely randomly.

Pair Corralation between Vy(r) Oppenheimer and Voya Target

Assuming the 90 days horizon Vy Oppenheimer Global is expected to generate 1.27 times more return on investment than Voya Target. However, Vy(r) Oppenheimer is 1.27 times more volatile than Voya Target Retirement. It trades about 0.41 of its potential returns per unit of risk. Voya Target Retirement is currently generating about 0.39 per unit of risk. If you would invest  626.00  in Vy Oppenheimer Global on April 20, 2025 and sell it today you would earn a total of  135.00  from holding Vy Oppenheimer Global or generate 21.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Vy Oppenheimer Global  vs.  Voya Target Retirement

Vy Oppenheimer Global

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Oppenheimer Global are ranked lower than 32 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Vy(r) Oppenheimer showed solid returns over the last few months and may actually be approaching a breakup point.

Voya Target Retirement

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Target Retirement are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Voya Target showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vy(r) Oppenheimer and Voya Target

The main advantage of trading using opposite Vy(r) Oppenheimer and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy(r) Oppenheimer 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 Vy Oppenheimer Global 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.