Correlation Between Voya Intermediate and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Voya Intermediate and Legg Mason 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 Intermediate and Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Intermediate Bond and Legg Mason Partners, you can compare the effects of market volatilities on Voya Intermediate and Legg Mason 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 Intermediate with a short position of Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Intermediate and Legg Mason.
Diversification Opportunities for Voya Intermediate and Legg Mason
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Legg is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Legg Mason Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Partners and Voya Intermediate 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 Intermediate Bond are associated (or correlated) with Legg Mason. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legg Mason Partners has no effect on the direction of Voya Intermediate i.e., Voya Intermediate and Legg Mason go up and down completely randomly.
Pair Corralation between Voya Intermediate and Legg Mason
Assuming the 90 days horizon Voya Intermediate is expected to generate 1.82 times less return on investment than Legg Mason. In addition to that, Voya Intermediate is 1.85 times more volatile than Legg Mason Partners. It trades about 0.09 of its total potential returns per unit of risk. Legg Mason Partners is currently generating about 0.32 per unit of volatility. If you would invest 665.00 in Legg Mason Partners on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Legg Mason Partners or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Legg Mason Partners
Performance |
| Timeline |
| Voya Intermediate Bond |
| Legg Mason Partners |
Voya Intermediate and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Intermediate and Legg Mason
The main advantage of trading using opposite Voya Intermediate and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Intermediate position performs unexpectedly, Legg Mason 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 Legg Mason will offset losses from the drop in Legg Mason's long position.| Voya Intermediate vs. Balanced Fund Investor | Voya Intermediate vs. Aam Select Income | Voya Intermediate vs. Rbb Fund | Voya Intermediate vs. T Rowe Price |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |