Correlation Between Voya High and Precious Metals
Can any of the company-specific risk be diversified away by investing in both Voya High and Precious Metals 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 High and Precious Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Precious Metals Ultrasector, you can compare the effects of market volatilities on Voya High and Precious Metals 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 High with a short position of Precious Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Precious Metals.
Diversification Opportunities for Voya High and Precious Metals
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Precious is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Precious Metals Ultrasector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precious Metals Ultr and Voya High 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 High Yield are associated (or correlated) with Precious Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precious Metals Ultr has no effect on the direction of Voya High i.e., Voya High and Precious Metals go up and down completely randomly.
Pair Corralation between Voya High and Precious Metals
Assuming the 90 days horizon Voya High is expected to generate 20.07 times less return on investment than Precious Metals. But when comparing it to its historical volatility, Voya High Yield is 20.78 times less risky than Precious Metals. It trades about 0.21 of its potential returns per unit of risk. Precious Metals Ultrasector is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 8,730 in Precious Metals Ultrasector on July 28, 2025 and sell it today you would earn a total of 4,787 from holding Precious Metals Ultrasector or generate 54.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Precious Metals Ultrasector
Performance |
| Timeline |
| Voya High Yield |
| Precious Metals Ultr |
Voya High and Precious Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Precious Metals
The main advantage of trading using opposite Voya High and Precious Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Precious Metals 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 Precious Metals will offset losses from the drop in Precious Metals' long position.| Voya High vs. Cs 604 Tax | Voya High vs. Aspiriant Risk Managed Municipal | Voya High vs. Ab Municipal Bond | Voya High vs. Bbh Intermediate Municipal |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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