Correlation Between Voya Global and Wealthbuilder Moderate

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

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

Diversification Opportunities for Voya Global and Wealthbuilder Moderate

0.35

Correlation Coefficient

Voya Global  Wealthbuilder Moderate

Weak diversification

The 3 months correlation between Voya and Wealthbuilder is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Bond and Wealthbuilder Moderate Balance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wealthbuilder Moderate and Voya 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 Voya Global Bond are associated (or correlated) with Wealthbuilder Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wealthbuilder Moderate has no effect on the direction of Voya Global i.e., Voya Global and Wealthbuilder Moderate go up and down completely randomly.

Pair Corralation between Voya Global and Wealthbuilder Moderate

Assuming the 90 days horizon Voya Global is expected to generate 2.08 times less return on investment than Wealthbuilder Moderate. But when comparing it to its historical volatility, Voya Global Bond is 1.06 times less risky than Wealthbuilder Moderate. It trades about 0.11 of its potential returns per unit of risk. Wealthbuilder Moderate Balanced is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,031  in Wealthbuilder Moderate Balanced on May 16, 2025 and sell it today you would earn a total of  47.00  from holding Wealthbuilder Moderate Balanced or generate 4.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Voya Global Bond  vs.  Wealthbuilder Moderate Balance

Voya Global Bond

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Global Bond 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 Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Wealthbuilder Moderate

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wealthbuilder Moderate Balanced are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Wealthbuilder Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Voya Global and Wealthbuilder Moderate

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

The idea behind Voya Global Bond and Wealthbuilder Moderate Balanced 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.