Correlation Between Voya Solution and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Voya Solution and Fidelity Freedom 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 Solution and Fidelity Freedom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Solution Conservative and Fidelity Freedom 2015, you can compare the effects of market volatilities on Voya Solution and Fidelity Freedom 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 Solution with a short position of Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Fidelity Freedom.
Diversification Opportunities for Voya Solution and Fidelity Freedom
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Fidelity is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Conservative and Fidelity Freedom 2015 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom 2015 and Voya Solution 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 Solution Conservative are associated (or correlated) with Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom 2015 has no effect on the direction of Voya Solution i.e., Voya Solution and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Voya Solution and Fidelity Freedom
Assuming the 90 days horizon Voya Solution is expected to generate 1.41 times less return on investment than Fidelity Freedom. But when comparing it to its historical volatility, Voya Solution Conservative is 1.24 times less risky than Fidelity Freedom. It trades about 0.24 of its potential returns per unit of risk. Fidelity Freedom 2015 is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,187 in Fidelity Freedom 2015 on July 6, 2025 and sell it today you would earn a total of 56.00 from holding Fidelity Freedom 2015 or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Voya Solution Conservative vs. Fidelity Freedom 2015
Performance |
| Timeline |
| Voya Solution Conser |
| Fidelity Freedom 2015 |
Voya Solution and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Solution and Fidelity Freedom
The main advantage of trading using opposite Voya Solution and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution position performs unexpectedly, Fidelity Freedom 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 Fidelity Freedom will offset losses from the drop in Fidelity Freedom's long position.| Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Limited Maturity | Voya Solution vs. Voya Bond Index |
| Fidelity Freedom vs. Voya Solution Conservative | Fidelity Freedom vs. Diversified Income Fund | Fidelity Freedom vs. Global Diversified Income | Fidelity Freedom vs. Stone Ridge Diversified |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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