Correlation Between Voya Infrastructure and Via Renewables

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

By analyzing existing cross correlation between Voya Infrastructure Industrials and Via Renewables, you can compare the effects of market volatilities on Voya Infrastructure and Via Renewables 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 Infrastructure with a short position of Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Infrastructure and Via Renewables.

Diversification Opportunities for Voya Infrastructure and Via Renewables

0.55

Correlation Coefficient

Voya Infrastructure  Via Renewables

Very weak diversification

The 3 months correlation between Voya and Via is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Voya Infrastructure Industrial and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables and Voya Infrastructure 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 Infrastructure Industrials are associated (or correlated) with Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Voya Infrastructure i.e., Voya Infrastructure and Via Renewables go up and down completely randomly.

Pair Corralation between Voya Infrastructure and Via Renewables

Considering the 90-day investment horizon Voya Infrastructure Industrials is expected to generate 1.17 times more return on investment than Via Renewables. However, Voya Infrastructure is 1.17 times more volatile than Via Renewables. It trades about 0.39 of its potential returns per unit of risk. Via Renewables is currently generating about 0.29 per unit of risk. If you would invest  1,052  in Voya Infrastructure Industrials on May 3, 2025 and sell it today you would earn a total of  137.00  from holding Voya Infrastructure Industrials or generate 13.02% return on investment over 90 days.

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

Voya Infrastructure Industrial  vs.  Via Renewables

Voya Infrastructure

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Infrastructure Industrials are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Voya Infrastructure exhibited solid returns over the last few months and may actually be approaching a breakup point.

Via Renewables

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Via Renewables are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Via Renewables may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Voya Infrastructure and Via Renewables

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

The idea behind Voya Infrastructure Industrials and Via Renewables 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.