Correlation Between Calamos Dynamic and Voya Vacs
Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Voya Vacs 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 Vacs 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 Vacs Index, you can compare the effects of market volatilities on Calamos Dynamic and Voya Vacs 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 Vacs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Voya Vacs.
Diversification Opportunities for Calamos Dynamic and Voya Vacs
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calamos and Voya is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Voya Vacs Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Vacs Index 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 Vacs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Vacs Index has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Voya Vacs go up and down completely randomly.
Pair Corralation between Calamos Dynamic and Voya Vacs
Considering the 90-day investment horizon Calamos Dynamic is expected to generate 4.29 times less return on investment than Voya Vacs. In addition to that, Calamos Dynamic is 1.7 times more volatile than Voya Vacs Index. It trades about 0.02 of its total potential returns per unit of risk. Voya Vacs Index is currently generating about 0.17 per unit of volatility. If you would invest 1,095 in Voya Vacs Index on October 20, 2024 and sell it today you would earn a total of 22.00 from holding Voya Vacs Index or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Dynamic Convertible vs. Voya Vacs Index
Performance |
| Timeline |
| Calamos Dynamic Conv |
| Voya Vacs Index |
Calamos Dynamic and Voya Vacs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Dynamic and Voya Vacs
The main advantage of trading using opposite Calamos Dynamic and Voya Vacs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Dynamic position performs unexpectedly, Voya Vacs 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 Vacs will offset losses from the drop in Voya Vacs' 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 Vacs vs. Voya Bond Index | Voya Vacs vs. Voya Bond Index | Voya Vacs vs. Voya Limited Maturity | Voya Vacs 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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