Correlation Between Strategic Asset and Voya Target
Can any of the company-specific risk be diversified away by investing in both Strategic Asset and Voya Target 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 Strategic Asset and Voya Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Asset Management and Voya Target Retirement, you can compare the effects of market volatilities on Strategic Asset and Voya Target 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 Strategic Asset with a short position of Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Asset and Voya Target.
Diversification Opportunities for Strategic Asset and Voya Target
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Strategic and Voya is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Asset Management and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement and Strategic Asset 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 Strategic Asset Management are associated (or correlated) with Voya Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of Strategic Asset i.e., Strategic Asset and Voya Target go up and down completely randomly.
Pair Corralation between Strategic Asset and Voya Target
Assuming the 90 days horizon Strategic Asset is expected to generate 1.51 times less return on investment than Voya Target. But when comparing it to its historical volatility, Strategic Asset Management is 1.47 times less risky than Voya Target. It trades about 0.21 of its potential returns per unit of risk. Voya Target Retirement is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,396 in Voya Target Retirement on June 5, 2025 and sell it today you would earn a total of 82.00 from holding Voya Target Retirement or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Asset Management vs. Voya Target Retirement
Performance |
| Timeline |
| Strategic Asset Mana |
| Voya Target Retirement |
Strategic Asset and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Asset and Voya Target
The main advantage of trading using opposite Strategic Asset and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Asset position performs unexpectedly, Voya Target 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 Target will offset losses from the drop in Voya Target's long position.| Strategic Asset vs. Morgan Stanley Global | Strategic Asset vs. Vanguard Global Equity | Strategic Asset vs. Dodge Global Stock | Strategic Asset vs. Ms Global Fixed |
| Voya Target vs. Ishares Municipal Bond | Voya Target vs. Bbh Intermediate Municipal | Voya Target vs. Lord Abbett Intermediate | Voya Target vs. Ab Municipal Bond |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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