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 Perspectives 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

0.99

Correlation Coefficient

Voya Global  Vy(r) Franklin

No risk reduction

The 3 months correlation between Voya and Vy(r) is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Perspectives 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 Perspectives 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 1.23 times less return on investment than Vy(r) Franklin. In addition to that, Voya Global is 1.48 times more volatile than Vy Franklin Income. It trades about 0.06 of its total potential returns per unit of risk. Vy Franklin Income is currently generating about 0.11 per unit of volatility. If you would invest  818.00  in Vy Franklin Income on April 8, 2025 and sell it today you would earn a total of  200.00  from holding Vy Franklin Income or generate 24.45% return on investment over 90 days.

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

Voya Global Perspectives  vs.  Vy Franklin Income

Voya Global Perspectives

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Global Perspectives are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Voya Global showed solid returns over the last few months and may actually be approaching a breakup point.

Vy Franklin Income

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Franklin Income are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Vy(r) Franklin may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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.

The idea behind Voya Global Perspectives 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.