Correlation Between Voya Solution and Advisors Capital

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

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

Diversification Opportunities for Voya Solution and Advisors Capital

0.96

Correlation Coefficient

Voya Solution  Advisors Capital

Almost no diversification

The 3 months correlation between Voya and Advisors is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Income and Advisors Capital Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advisors Capital Smallmid 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 Income are associated (or correlated) with Advisors Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advisors Capital Smallmid has no effect on the direction of Voya Solution i.e., Voya Solution and Advisors Capital go up and down completely randomly.

Pair Corralation between Voya Solution and Advisors Capital

Assuming the 90 days horizon Voya Solution is expected to generate 2.39 times less return on investment than Advisors Capital. But when comparing it to its historical volatility, Voya Solution Income is 3.62 times less risky than Advisors Capital. It trades about 0.23 of its potential returns per unit of risk. Advisors Capital Smallmid is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,017  in Advisors Capital Smallmid on May 4, 2025 and sell it today you would earn a total of  103.00  from holding Advisors Capital Smallmid or generate 10.13% return on investment over 90 days.

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

Voya Solution Income  vs.  Advisors Capital Smallmid

Voya Solution Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Solution Income are ranked lower than 18 (%) 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.

Advisors Capital Smallmid

Risk-Adjusted Performance

Good

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

Pair Trading with Voya Solution and Advisors Capital

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

The idea behind Voya Solution Income and Advisors Capital Smallmid 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.