Correlation Between Legg Mason and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Voya Solution 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 Legg Mason and Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Partners and Voya Solution Moderately, you can compare the effects of market volatilities on Legg Mason and Voya Solution 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 Legg Mason with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Voya Solution.
Diversification Opportunities for Legg Mason and Voya Solution
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Legg and Voya is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Partners and Voya Solution Moderately in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Moderately and Legg Mason 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 Legg Mason Partners are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Moderately has no effect on the direction of Legg Mason i.e., Legg Mason and Voya Solution go up and down completely randomly.
Pair Corralation between Legg Mason and Voya Solution
If you would invest 925.00 in Voya Solution Moderately on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Voya Solution Moderately or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.22% |
| Values | Daily Returns |
Legg Mason Partners vs. Voya Solution Moderately
Performance |
| Timeline |
| Legg Mason Partners |
| Voya Solution Moderately |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Legg Mason and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Voya Solution
The main advantage of trading using opposite Legg Mason and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.| Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard 500 Index | Legg Mason vs. Vanguard Total Stock | Legg Mason vs. Vanguard Total Stock |
| Voya Solution vs. Siit Emerging Markets | Voya Solution vs. Artisan Emerging Markets | Voya Solution vs. Legg Mason Partners | Voya Solution vs. Doubleline Emerging Markets |
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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |