Correlation Between Via Renewables and Voya Infrastructure

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

By analyzing existing cross correlation between Via Renewables and Voya Infrastructure Industrials, you can compare the effects of market volatilities on Via Renewables and Voya Infrastructure 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 Via Renewables with a short position of Voya Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Renewables and Voya Infrastructure.

Diversification Opportunities for Via Renewables and Voya Infrastructure

0.98

Correlation Coefficient

Via Renewables  Voya Infrastructure

Almost no diversification

The 3 months correlation between Via and Voya is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Via Renewables and Voya Infrastructure Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Infrastructure and Via Renewables 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 Via Renewables are associated (or correlated) with Voya Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Infrastructure has no effect on the direction of Via Renewables i.e., Via Renewables and Voya Infrastructure go up and down completely randomly.

Pair Corralation between Via Renewables and Voya Infrastructure

Assuming the 90 days horizon Via Renewables is expected to generate 1.42 times less return on investment than Voya Infrastructure. But when comparing it to its historical volatility, Via Renewables is 1.19 times less risky than Voya Infrastructure. It trades about 0.31 of its potential returns per unit of risk. Voya Infrastructure Industrials is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest  1,058  in Voya Infrastructure Industrials on May 2, 2025 and sell it today you would earn a total of  131.00  from holding Voya Infrastructure Industrials or generate 12.38% return on investment over 90 days.

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

Via Renewables  vs.  Voya Infrastructure Industrial

Via Renewables

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Via Renewables are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Via Renewables may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Voya Infrastructure

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Infrastructure Industrials are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Voya Infrastructure may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Via Renewables and Voya Infrastructure

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

The idea behind Via Renewables and Voya Infrastructure Industrials 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.

Check out your portfolio center.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.