Correlation Between Balanced Fund and Voya Global
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Voya Global 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 Balanced Fund and Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Retail and Voya Global Bond, you can compare the effects of market volatilities on Balanced Fund and Voya Global 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 Balanced Fund with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Voya Global.
Diversification Opportunities for Balanced Fund and Voya Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Balanced and Voya is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Retail and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond and Balanced Fund 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 Balanced Fund Retail are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Balanced Fund i.e., Balanced Fund and Voya Global go up and down completely randomly.
Pair Corralation between Balanced Fund and Voya Global
Assuming the 90 days horizon Balanced Fund Retail is expected to generate 1.04 times more return on investment than Voya Global. However, Balanced Fund is 1.04 times more volatile than Voya Global Bond. It trades about 0.22 of its potential returns per unit of risk. Voya Global Bond is currently generating about -0.28 per unit of risk. If you would invest 1,289 in Balanced Fund Retail on May 1, 2025 and sell it today you would earn a total of 17.00 from holding Balanced Fund Retail or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Balanced Fund Retail vs. Voya Global Bond
Performance |
| Timeline |
| Balanced Fund Retail |
| Voya Global Bond |
Balanced Fund and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Voya Global
The main advantage of trading using opposite Balanced Fund and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Balanced Fund vs. Muirfield Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Quantex Fund Retail |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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