Correlation Between Voya Prime and Kinetics Multi

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

By analyzing existing cross correlation between Voya Prime Rate and Kinetics Multi Disciplinary Income, you can compare the effects of market volatilities on Voya Prime and Kinetics Multi 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 Prime with a short position of Kinetics Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Prime and Kinetics Multi.

Diversification Opportunities for Voya Prime and Kinetics Multi

-0.53

Correlation Coefficient

Voya Prime  Kinetics Multi

Excellent diversification

The 3 months correlation between Voya and Kinetics is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Voya Prime Rate and Kinetics Multi Disciplinary In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Multi Disci and Voya Prime 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 Prime Rate are associated (or correlated) with Kinetics Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Multi Disci has no effect on the direction of Voya Prime i.e., Voya Prime and Kinetics Multi go up and down completely randomly.

Pair Corralation between Voya Prime and Kinetics Multi

Assuming the 90 days horizon Voya Prime Rate is expected to generate 16.62 times more return on investment than Kinetics Multi. However, Voya Prime is 16.62 times more volatile than Kinetics Multi Disciplinary Income. It trades about 0.13 of its potential returns per unit of risk. Kinetics Multi Disciplinary Income is currently generating about 0.49 per unit of risk. If you would invest  760.00  in Voya Prime Rate on May 4, 2025 and sell it today you would earn a total of  22.00  from holding Voya Prime Rate or generate 2.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	46.77%
Values	Daily Returns

Voya Prime Rate  vs.  Kinetics Multi Disciplinary In

Voya Prime Rate

Risk-Adjusted Performance

OK

Over the last 90 days Voya Prime Rate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak basic indicators, Voya Prime may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Kinetics Multi Disci

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Multi Disciplinary Income are ranked lower than 38 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Kinetics Multi 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 Prime and Kinetics Multi

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

The idea behind Voya Prime Rate and Kinetics Multi Disciplinary Income 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.