Correlation Between Western Asset and Voya Us
Can any of the company-specific risk be diversified away by investing in both Western Asset and Voya Us 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 Western Asset and Voya Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset High and Voya Bond Index, you can compare the effects of market volatilities on Western Asset and Voya Us 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 Western Asset with a short position of Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Voya Us.
Diversification Opportunities for Western Asset and Voya Us
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Voya is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset High and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Western Asset 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 Western Asset High are associated (or correlated) with Voya Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Western Asset i.e., Western Asset and Voya Us go up and down completely randomly.
Pair Corralation between Western Asset and Voya Us
Assuming the 90 days horizon Western Asset High is expected to generate 0.6 times more return on investment than Voya Us. However, Western Asset High is 1.65 times less risky than Voya Us. It trades about 0.2 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.08 per unit of risk. If you would invest 656.00 in Western Asset High on September 3, 2024 and sell it today you would earn a total of 40.00 from holding Western Asset High or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset High vs. Voya Bond Index
Performance |
| Timeline |
| Western Asset High |
| Voya Bond Index |
Western Asset and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Voya Us
The main advantage of trading using opposite Western Asset and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Voya Us 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 Us will offset losses from the drop in Voya Us' long position.| Western Asset vs. Lord Abbett Convertible | Western Asset vs. Allianzgi Convertible Income | Western Asset vs. Putnam Convertible Incm Gwth | Western Asset vs. Virtus Convertible |
| Voya Us vs. Angel Oak Ultrashort | Voya Us vs. Federated Short Term Income | Voya Us vs. Ab Select Longshort | Voya Us vs. Sterling Capital Short |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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