Correlation Between Voya Solution and Changing Parameters

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

By analyzing existing cross correlation between Voya Solution 2035 and Changing Parameters Fund, you can compare the effects of market volatilities on Voya Solution and Changing Parameters 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 Changing Parameters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Changing Parameters.

Diversification Opportunities for Voya Solution and Changing Parameters

0.66

Correlation Coefficient

Voya Solution  Changing Parameters

Poor diversification

The 3 months correlation between Voya and Changing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution 2035 and Changing Parameters Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changing Parameters 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 2035 are associated (or correlated) with Changing Parameters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changing Parameters has no effect on the direction of Voya Solution i.e., Voya Solution and Changing Parameters go up and down completely randomly.

Pair Corralation between Voya Solution and Changing Parameters

Assuming the 90 days horizon Voya Solution is expected to generate 14.75 times less return on investment than Changing Parameters. In addition to that, Voya Solution is 6.77 times more volatile than Changing Parameters Fund. It trades about 0.0 of its total potential returns per unit of risk. Changing Parameters Fund is currently generating about 0.37 per unit of volatility. If you would invest  1,042  in Changing Parameters Fund on May 11, 2025 and sell it today you would earn a total of  27.00  from holding Changing Parameters Fund or generate 2.59% return on investment over 90 days.

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

Voya Solution 2035  vs.  Changing Parameters Fund

Voya Solution 2035

Risk-Adjusted Performance

Weakest

Over the last 90 days Voya Solution 2035 has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Voya Solution is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Changing Parameters

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Changing Parameters Fund are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Changing Parameters 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 Solution and Changing Parameters

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

The idea behind Voya Solution 2035 and Changing Parameters Fund 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.