Correlation Between Voya Limited and Vy(r) Jpmorgan

Can any of the company-specific risk be diversified away by investing in both Voya Limited and Vy(r) Jpmorgan 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 Limited and Vy(r) Jpmorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Voya Limited Maturity and Vy Jpmorgan Small, you can compare the effects of market volatilities on Voya Limited and Vy(r) Jpmorgan 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 Limited with a short position of Vy(r) Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Limited and Vy(r) Jpmorgan.

Diversification Opportunities for Voya Limited and Vy(r) Jpmorgan

0.75

Correlation Coefficient

Voya Limited  Vy(r) Jpmorgan

Poor diversification

The 3 months correlation between Voya and Vy(r) is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Voya Limited Maturity and Vy Jpmorgan Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Jpmorgan Small and Voya Limited 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 Limited Maturity are associated (or correlated) with Vy(r) Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Jpmorgan Small has no effect on the direction of Voya Limited i.e., Voya Limited and Vy(r) Jpmorgan go up and down completely randomly.

Pair Corralation between Voya Limited and Vy(r) Jpmorgan

Assuming the 90 days horizon Voya Limited is expected to generate 15.29 times less return on investment than Vy(r) Jpmorgan. But when comparing it to its historical volatility, Voya Limited Maturity is 8.82 times less risky than Vy(r) Jpmorgan. It trades about 0.11 of its potential returns per unit of risk. Vy Jpmorgan Small is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1,261  in Vy Jpmorgan Small on April 25, 2025 and sell it today you would earn a total of  173.00  from holding Vy Jpmorgan Small or generate 13.72% return on investment over 90 days.

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

Voya Limited Maturity  vs.  Vy Jpmorgan Small

Voya Limited Maturity

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Limited Maturity are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Voya Limited is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Vy Jpmorgan Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Jpmorgan Small are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Vy(r) Jpmorgan showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Voya Limited and Vy(r) Jpmorgan

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

The idea behind Voya Limited Maturity and Vy Jpmorgan 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.

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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.