Correlation Between Voya Index and Vy Clarion

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

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

Diversification Opportunities for Voya Index and Vy Clarion

0.4

Correlation Coefficient

Voya Index  Vy Clarion

Very weak diversification

The 3 months correlation between Voya and IRGIX is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Solution and Vy Clarion Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Clarion Global and Voya Index 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 Index Solution are associated (or correlated) with Vy Clarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Clarion Global has no effect on the direction of Voya Index i.e., Voya Index and Vy Clarion go up and down completely randomly.

Pair Corralation between Voya Index and Vy Clarion

Assuming the 90 days horizon Voya Index Solution is expected to generate 0.81 times more return on investment than Vy Clarion. However, Voya Index Solution is 1.23 times less risky than Vy Clarion. It trades about 0.38 of its potential returns per unit of risk. Vy Clarion Global is currently generating about 0.06 per unit of risk. If you would invest  1,493  in Voya Index Solution on April 20, 2025 and sell it today you would earn a total of  269.00  from holding Voya Index Solution or generate 18.02% return on investment over 90 days.

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

Voya Index Solution  vs.  Vy Clarion Global

Voya Index Solution

Risk-Adjusted Performance

Strong

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

Vy Clarion Global

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Clarion Global are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Vy Clarion is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Voya Index and Vy Clarion

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

The idea behind Voya Index Solution and Vy Clarion Global 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.