Correlation Between Vanguard Emerging and Voya Asia
Can any of the company-specific risk be diversified away by investing in both Vanguard Emerging 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 Vanguard Emerging and Voya Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Emerging Markets and Voya Asia Pacific, you can compare the effects of market volatilities on Vanguard Emerging 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 Vanguard Emerging with a short position of Voya Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Emerging and Voya Asia.
Diversification Opportunities for Vanguard Emerging and Voya Asia
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Voya is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Emerging Markets 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 Vanguard Emerging 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 Vanguard Emerging Markets 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 Vanguard Emerging i.e., Vanguard Emerging and Voya Asia go up and down completely randomly.
Pair Corralation between Vanguard Emerging and Voya Asia
Assuming the 90 days horizon Vanguard Emerging Markets is expected to generate 0.68 times more return on investment than Voya Asia. However, Vanguard Emerging Markets is 1.48 times less risky than Voya Asia. It trades about 0.15 of its potential returns per unit of risk. Voya Asia Pacific is currently generating about 0.07 per unit of risk. If you would invest 2,582 in Vanguard Emerging Markets on August 18, 2025 and sell it today you would earn a total of 226.00 from holding Vanguard Emerging Markets or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Emerging Markets vs. Voya Asia Pacific
Performance |
| Timeline |
| Vanguard Emerging Markets |
| Voya Asia Pacific |
Vanguard Emerging and Voya Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Emerging and Voya Asia
The main advantage of trading using opposite Vanguard Emerging and Voya Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Emerging 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.| Vanguard Emerging vs. Direxion Daily FTSE | Vanguard Emerging vs. Invesco High Yield | Vanguard Emerging vs. iShares Micro Cap ETF | Vanguard Emerging vs. OShares Small Cap Quality |
| Voya Asia vs. Virtus Global Multi | Voya Asia vs. T Rowe Price | Voya Asia vs. Hennessy Large Cap | Voya Asia vs. Clough Global Allocation |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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