Correlation Between Emerging Markets and Voya Asia
Can any of the company-specific risk be diversified away by investing in both Emerging Markets and Voya Asia 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 Emerging Markets and Voya Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Markets Fund and Voya Asia Pacific, you can compare the effects of market volatilities on Emerging Markets and Voya Asia 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 Emerging Markets with a short position of Voya Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Voya Asia.
Diversification Opportunities for Emerging Markets and Voya Asia
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Emerging and Voya is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Fund and Voya Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Asia Pacific and Emerging Markets 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 Emerging Markets Fund are associated (or correlated) with Voya Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Asia Pacific has no effect on the direction of Emerging Markets i.e., Emerging Markets and Voya Asia go up and down completely randomly.
Pair Corralation between Emerging Markets and Voya Asia
Assuming the 90 days horizon Emerging Markets is expected to generate 1.05 times less return on investment than Voya Asia. But when comparing it to its historical volatility, Emerging Markets Fund is 1.19 times less risky than Voya Asia. It trades about 0.24 of its potential returns per unit of risk. Voya Asia Pacific is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 597.00 in Voya Asia Pacific on August 5, 2025 and sell it today you would earn a total of 180.00 from holding Voya Asia Pacific or generate 30.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerging Markets Fund vs. Voya Asia Pacific
Performance |
| Timeline |
| Emerging Markets |
| Voya Asia Pacific |
Emerging Markets and Voya Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Voya Asia
The main advantage of trading using opposite Emerging Markets and Voya Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets position performs unexpectedly, Voya Asia 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 Asia will offset losses from the drop in Voya Asia's long position.| Emerging Markets vs. Templeton Developing Markets | Emerging Markets vs. Goldman Sachs Emerging | Emerging Markets vs. Templeton Developing Markets | Emerging Markets vs. Goldman Sachs Mid |
| Voya Asia vs. T Rowe Price | Voya Asia vs. European Equity Closed | Voya Asia vs. Principal Real Estate | Voya Asia vs. Allianzgi Nfj International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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