Correlation Between Voya Global and Vy(r) Franklin
Can any of the company-specific risk be diversified away by investing in both Voya Global and Vy(r) Franklin 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 Global and Vy(r) Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Bond and Vy Franklin Income, you can compare the effects of market volatilities on Voya Global and Vy(r) Franklin 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 Global with a short position of Vy(r) Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Vy(r) Franklin.
Diversification Opportunities for Voya Global and Vy(r) Franklin
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Vy(r) is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Bond and Vy Franklin Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Franklin Income and Voya Global 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 Global Bond are associated (or correlated) with Vy(r) Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Franklin Income has no effect on the direction of Voya Global i.e., Voya Global and Vy(r) Franklin go up and down completely randomly.
Pair Corralation between Voya Global and Vy(r) Franklin
Assuming the 90 days horizon Voya Global is expected to generate 5.56 times less return on investment than Vy(r) Franklin. But when comparing it to its historical volatility, Voya Global Bond is 1.4 times less risky than Vy(r) Franklin. It trades about 0.05 of its potential returns per unit of risk. Vy Franklin Income is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 937.00 in Vy Franklin Income on April 20, 2025 and sell it today you would earn a total of 59.00 from holding Vy Franklin Income or generate 6.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.41% |
Values | Daily Returns |
Voya Global Bond vs. Vy Franklin Income
Performance |
Timeline |
Voya Global Bond |
Vy Franklin Income |
Voya Global and Vy(r) Franklin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Voya Global and Vy(r) Franklin
The main advantage of trading using opposite Voya Global and Vy(r) Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Vy(r) Franklin 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(r) Franklin will offset losses from the drop in Vy(r) Franklin's long position.Voya Global vs. Franklin Natural Resources | Voya Global vs. Energy Basic Materials | Voya Global vs. Global Resources Fund | Voya Global vs. Vanguard Energy Index |
Vy(r) Franklin vs. Voya Bond Index | Vy(r) Franklin vs. Voya Bond Index | Vy(r) Franklin vs. Voya Limited Maturity | Vy(r) Franklin vs. Voya Limited Maturity |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |