Correlation Between Ab Global and Voya Solution

Can any of the company-specific risk be diversified away by investing in both Ab Global and Voya Solution 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 Ab Global and Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ab Global E and Voya Solution Conservative, you can compare the effects of market volatilities on Ab Global and Voya Solution 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 Ab Global with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Voya Solution.

Diversification Opportunities for Ab Global and Voya Solution

0.94

Correlation Coefficient

Ab Global  Voya Solution

Almost no diversification

The 3 months correlation between GCECX and Voya is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global E and Voya Solution Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Conser and Ab Global 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 Ab Global E are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Conser has no effect on the direction of Ab Global i.e., Ab Global and Voya Solution go up and down completely randomly.

Pair Corralation between Ab Global and Voya Solution

Assuming the 90 days horizon Ab Global E is expected to generate 3.03 times more return on investment than Voya Solution. However, Ab Global is 3.03 times more volatile than Voya Solution Conservative. It trades about 0.16 of its potential returns per unit of risk. Voya Solution Conservative is currently generating about 0.26 per unit of risk. If you would invest  1,700  in Ab Global E on May 3, 2025 and sell it today you would earn a total of  123.00  from holding Ab Global E or generate 7.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Ab Global E  vs.  Voya Solution Conservative

Ab Global E

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Global E are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Ab Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Voya Solution Conser

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Solution Conservative are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Voya Solution is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ab Global and Voya Solution

The main advantage of trading using opposite Ab Global and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.

The idea behind Ab Global E and Voya Solution Conservative 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.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.