Correlation Between Vy(r) Oppenheimer and Voya Retirement

Can any of the company-specific risk be diversified away by investing in both Vy(r) Oppenheimer and Voya Retirement 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 Retirement 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 Retirement Solution, you can compare the effects of market volatilities on Vy(r) Oppenheimer and Voya Retirement 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 Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy(r) Oppenheimer and Voya Retirement.

Diversification Opportunities for Vy(r) Oppenheimer and Voya Retirement

1.0

Correlation Coefficient

Vy(r) Oppenheimer  Voya Retirement

No risk reduction

The 3 months correlation between Vy(r) and Voya is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Vy Oppenheimer Global and Voya Retirement Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Solution 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 Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Solution has no effect on the direction of Vy(r) Oppenheimer i.e., Vy(r) Oppenheimer and Voya Retirement go up and down completely randomly.

Pair Corralation between Vy(r) Oppenheimer and Voya Retirement

Assuming the 90 days horizon Vy Oppenheimer Global is expected to generate 1.12 times more return on investment than Voya Retirement. However, Vy(r) Oppenheimer is 1.12 times more volatile than Voya Retirement Solution. It trades about 0.34 of its potential returns per unit of risk. Voya Retirement Solution is currently generating about 0.32 per unit of risk. If you would invest  659.00  in Vy Oppenheimer Global on April 24, 2025 and sell it today you would earn a total of  102.00  from holding Vy Oppenheimer Global or generate 15.48% return on investment over 90 days.

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

Vy Oppenheimer Global  vs.  Voya Retirement Solution

Vy Oppenheimer Global

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Oppenheimer Global are ranked lower than 27 (%) 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 Retirement Solution

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Retirement Solution are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Voya Retirement may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Vy(r) Oppenheimer and Voya Retirement

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

The idea behind Vy Oppenheimer Global and Voya Retirement Solution 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.