Correlation Between Voya Target and William Blair

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Can any of the company-specific risk be diversified away by investing in both Voya Target and William Blair 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 William Blair 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 William Blair Small, you can compare the effects of market volatilities on Voya Target and William Blair 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 William Blair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and William Blair.

Diversification Opportunities for Voya Target and William Blair

-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between Voya and William is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement and William Blair Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on William Blair Small 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 William Blair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of William Blair Small has no effect on the direction of Voya Target i.e., Voya Target and William Blair go up and down completely randomly.

Pair Corralation between Voya Target and William Blair

Assuming the 90 days horizon Voya Target Retirement is expected to generate 0.42 times more return on investment than William Blair. However, Voya Target Retirement is 2.36 times less risky than William Blair. It trades about 0.04 of its potential returns per unit of risk. William Blair Small is currently generating about -0.03 per unit of risk. If you would invest  1,451  in Voya Target Retirement on August 27, 2025 and sell it today you would earn a total of  15.00  from holding Voya Target Retirement or generate 1.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Voya Target Retirement  vs.  William Blair Small

 Performance 
       Timeline  
Voya Target Retirement 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Voya Target Retirement are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Voya Target is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
William Blair Small 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days William Blair Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, William Blair is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya Target and William Blair Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Voya Target and William Blair

The main advantage of trading using opposite Voya Target and William Blair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target position performs unexpectedly, William Blair 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 William Blair will offset losses from the drop in William Blair's long position.
The idea behind Voya Target Retirement and William Blair Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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