Correlation Between Calamos Dynamic and Voya Index
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic 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 Calamos Dynamic and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Dynamic Convertible and Voya Index Solution, you can compare the effects of market volatilities on Calamos Dynamic 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 Calamos Dynamic with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Voya Index.
Diversification Opportunities for Calamos Dynamic and Voya Index
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Calamos and Voya is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Calamos Dynamic 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 Calamos Dynamic Convertible 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 Solution has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Voya Index go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Voya Index
Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Voya Index. In addition to that, Calamos Dynamic is 3.29 times more volatile than Voya Index Solution. It trades about -0.15 of its total potential returns per unit of risk. Voya Index Solution is currently generating about 0.25 per unit of volatility. If you would invest 1,136 in Voya Index Solution on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Voya Index Solution or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Voya Index Solution
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Voya Index Solution |
Calamos Dynamic and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Voya Index
The main advantage of trading using opposite Calamos Dynamic and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic 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.| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
| Voya Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |