Correlation Between Pimco Trends and Voya Index

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

By analyzing existing cross correlation between Pimco Trends Managed and Voya Index Solution, you can compare the effects of market volatilities on Pimco Trends and Voya Index 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 Pimco Trends with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Voya Index.

Diversification Opportunities for Pimco Trends and Voya Index

0.45

Correlation Coefficient

Pimco Trends  Voya Index

Very weak diversification

The 3 months correlation between Pimco and Voya is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Pimco Trends 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 Pimco Trends Managed are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Pimco Trends i.e., Pimco Trends and Voya Index go up and down completely randomly.

Pair Corralation between Pimco Trends and Voya Index

Assuming the 90 days horizon Pimco Trends is expected to generate 136.27 times less return on investment than Voya Index. But when comparing it to its historical volatility, Pimco Trends Managed is 1.27 times less risky than Voya Index. It trades about 0.0 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,586  in Voya Index Solution on May 4, 2025 and sell it today you would earn a total of  155.00  from holding Voya Index Solution or generate 9.77% return on investment over 90 days.

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

Pimco Trends Managed  vs.  Voya Index Solution

Pimco Trends Managed

Risk-Adjusted Performance

Very Weak

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

Voya Index Solution

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Index Solution are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Voya Index may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Pimco Trends and Voya Index

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

The idea behind Pimco Trends Managed and Voya Index Solution 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.