Correlation Between Voya Target and Fs Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Voya Target and Fs Multi-strategy 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 Target and Fs Multi-strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Target Retirement and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Voya Target and Fs Multi-strategy 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 Target with a short position of Fs Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and Fs Multi-strategy.
Diversification Opportunities for Voya Target and Fs Multi-strategy
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and FSMSX is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement and Fs Multi Strategy Alt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Multi Strategy and Voya Target 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 Target Retirement are associated (or correlated) with Fs Multi-strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Multi Strategy has no effect on the direction of Voya Target i.e., Voya Target and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between Voya Target and Fs Multi-strategy
Assuming the 90 days horizon Voya Target Retirement is expected to generate 2.93 times more return on investment than Fs Multi-strategy. However, Voya Target is 2.93 times more volatile than Fs Multi Strategy Alt. It trades about 0.26 of its potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.3 per unit of risk. If you would invest 1,452 in Voya Target Retirement on June 4, 2025 and sell it today you would earn a total of 33.00 from holding Voya Target Retirement or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Target Retirement vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Voya Target Retirement |
| Fs Multi Strategy |
Voya Target and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Target and Fs Multi-strategy
The main advantage of trading using opposite Voya Target and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, Fs Multi-strategy 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 Fs Multi-strategy will offset losses from the drop in Fs Multi-strategy's long position.| Voya Target vs. Vanguard Target Retirement | Voya Target vs. American Funds 2035 | Voya Target vs. American Funds 2035 | Voya Target vs. American Funds 2035 |
| Fs Multi-strategy vs. Virtus Seix Government | Fs Multi-strategy vs. Franklin Adjustable Government | Fs Multi-strategy vs. Ab Municipal Bond | Fs Multi-strategy vs. Morningstar 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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