Correlation Between Legg Mason and Voya Global
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Voya Global 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 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Bw and Voya Global Equity, you can compare the effects of market volatilities on Legg Mason and Voya Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Voya Global.
Diversification Opportunities for Legg Mason and Voya Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Legg and Voya is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Bw and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity 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 Bw are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Legg Mason i.e., Legg Mason and Voya Global go up and down completely randomly.
Pair Corralation between Legg Mason and Voya Global
Assuming the 90 days horizon Legg Mason Bw is expected to under-perform the Voya Global. In addition to that, Legg Mason is 1.22 times more volatile than Voya Global Equity. It trades about -0.11 of its total potential returns per unit of risk. Voya Global Equity is currently generating about -0.06 per unit of volatility. If you would invest 4,023 in Voya Global Equity on February 8, 2024 and sell it today you would lose (38.00) from holding Voya Global Equity or give up 0.94% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Legg Mason Bw vs. Voya Global Equity
Performance |
Timeline |
Legg Mason Bw |
Voya Global Equity |
Legg Mason and Voya Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Legg Mason and Voya Global
The main advantage of trading using opposite Legg Mason and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.Legg Mason vs. Dodge Cox Stock | Legg Mason vs. American Funds American | Legg Mason vs. American Funds American | Legg Mason vs. American Mutual Fund |
Voya Global vs. Franklin Mutual Global | Voya Global vs. Dodge Cox Global | Voya Global vs. Franklin Mutual Global | Voya Global 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |