Correlation Between Western Asset and Voya High
Can any of the company-specific risk be diversified away by investing in both Western Asset and Voya High 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 High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Municipal and Voya High Yield, you can compare the effects of market volatilities on Western Asset and Voya High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Voya High.
Diversification Opportunities for Western Asset and Voya High
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and Voya is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Voya High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya High Yield 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 Municipal are associated (or correlated) with Voya High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya High Yield has no effect on the direction of Western Asset i.e., Western Asset and Voya High go up and down completely randomly.
Pair Corralation between Western Asset and Voya High
Assuming the 90 days horizon Western Asset is expected to generate 1.04 times less return on investment than Voya High. In addition to that, Western Asset is 1.04 times more volatile than Voya High Yield. It trades about 0.08 of its total potential returns per unit of risk. Voya High Yield is currently generating about 0.08 per unit of volatility. If you would invest 879.00 in Voya High Yield on September 6, 2025 and sell it today you would earn a total of 8.00 from holding Voya High Yield or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Municipal vs. Voya High Yield
Performance |
| Timeline |
| Western Asset Municipal |
| Voya High Yield |
Western Asset and Voya High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Voya High
The main advantage of trading using opposite Western Asset and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Voya High 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 High will offset losses from the drop in Voya High's long position.| Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard 500 Index | Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard Total Stock |
| Voya High vs. Voya Bond Index | Voya High vs. Voya Bond Index | Voya High vs. Voya Limited Maturity | Voya High vs. Voya Limited Maturity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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