Correlation Between Voya Large and Vy Franklin

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

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

Diversification Opportunities for Voya Large and Vy Franklin

0.96

Correlation Coefficient

Voya Large  Vy Franklin

Almost no diversification

The 3 months correlation between Voya and IIFAX is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap 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 Large 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 Large Cap are associated (or correlated) with Vy 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 Large i.e., Voya Large and Vy Franklin go up and down completely randomly.

Pair Corralation between Voya Large and Vy Franklin

Assuming the 90 days horizon Voya Large Cap is expected to generate 2.35 times more return on investment than Vy Franklin. However, Voya Large is 2.35 times more volatile than Vy Franklin Income. It trades about 0.2 of its potential returns per unit of risk. Vy Franklin Income is currently generating about 0.3 per unit of risk. If you would invest  550.00  in Voya Large Cap on April 7, 2025 and sell it today you would earn a total of  87.00  from holding Voya Large Cap or generate 15.82% return on investment over 90 days.

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

Voya Large Cap  vs.  Vy Franklin Income

Voya Large Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Large Cap are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Voya Large showed solid returns over the last few months and may actually be approaching a breakup point.

Vy Franklin Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Franklin Income are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Vy Franklin may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Voya Large and Vy Franklin

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

The idea behind Voya Large Cap and Vy Franklin Income 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.