Correlation Between Great-west and Voya Global
Can any of the company-specific risk be diversified away by investing in both Great-west 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 Great-west and Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Government Mortgage and Voya Global Bond, you can compare the effects of market volatilities on Great-west 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 Great-west with a short position of Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west and Voya Global.
Diversification Opportunities for Great-west and Voya Global
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great-west and VOYA is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Great West Government Mortgage 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 Great-west 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 Great West Government Mortgage 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 Great-west i.e., Great-west and Voya Global go up and down completely randomly.
Pair Corralation between Great-west and Voya Global
Assuming the 90 days horizon Great West Government Mortgage is expected to generate 0.78 times more return on investment than Voya Global. However, Great West Government Mortgage is 1.28 times less risky than Voya Global. It trades about 0.18 of its potential returns per unit of risk. Voya Global Bond is currently generating about 0.08 per unit of risk. If you would invest 814.00 in Great West Government Mortgage on June 7, 2025 and sell it today you would earn a total of 24.00 from holding Great West Government Mortgage or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Government Mortgage vs. Voya Global Bond
Performance |
| Timeline |
| Great West Government |
| Voya Global Bond |
Great-west and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west and Voya Global
The main advantage of trading using opposite Great-west and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west 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.| Great-west vs. Lifestyle Ii Moderate | Great-west vs. Voya Target Retirement | Great-west vs. Jpmorgan Smartretirement 2035 | Great-west vs. Sa Worldwide Moderate |
| Voya Global vs. Voya Bond Index | Voya Global vs. Voya Bond Index | Voya Global vs. Voya Limited Maturity | Voya Global vs. Voya Limited Maturity |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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