Correlation Between Leggmason Partners and Voya Index
Can any of the company-specific risk be diversified away by investing in both Leggmason Partners 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 Leggmason Partners and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leggmason Partners Institutional and Voya Index Plus, you can compare the effects of market volatilities on Leggmason Partners 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 Leggmason Partners with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggmason Partners and Voya Index.
Diversification Opportunities for Leggmason Partners and Voya Index
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leggmason and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leggmason Partners Institution and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus and Leggmason Partners 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 Leggmason Partners Institutional 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 Plus has no effect on the direction of Leggmason Partners i.e., Leggmason Partners and Voya Index go up and down completely randomly.
Pair Corralation between Leggmason Partners and Voya Index
Assuming the 90 days horizon Leggmason Partners is expected to generate 6.92 times less return on investment than Voya Index. But when comparing it to its historical volatility, Leggmason Partners Institutional is 9.53 times less risky than Voya Index. It trades about 0.11 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,788 in Voya Index Plus on September 12, 2024 and sell it today you would earn a total of 393.00 from holding Voya Index Plus or generate 21.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Leggmason Partners Institution vs. Voya Index Plus
Performance |
| Timeline |
| Leggmason Partners |
| Voya Index Plus |
Leggmason Partners and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leggmason Partners and Voya Index
The main advantage of trading using opposite Leggmason Partners and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggmason Partners 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.| Leggmason Partners vs. Siit Ultra Short | Leggmason Partners vs. Blackrock Short Term Inflat Protected | Leggmason Partners vs. Dreyfus Short Intermediate | Leggmason Partners vs. Astor Longshort Fund |
| Voya Index vs. Vanguard Mid Cap Index | Voya Index vs. SCOR PK | Voya Index vs. Morningstar Unconstrained Allocation | Voya Index vs. Via Renewables |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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