Correlation Between Calamos Global and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Calamos Global and Voya Solution 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 Global and Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Global Equity and Voya Solution 2060, you can compare the effects of market volatilities on Calamos Global and Voya Solution 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 Global with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Global and Voya Solution.
Diversification Opportunities for Calamos Global and Voya Solution
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Calamos and Voya is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Global Equity and Voya Solution 2060 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution 2060 and Calamos Global 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 Global Equity are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution 2060 has no effect on the direction of Calamos Global i.e., Calamos Global and Voya Solution go up and down completely randomly.
Pair Corralation between Calamos Global and Voya Solution
Assuming the 90 days horizon Calamos Global Equity is expected to generate 1.54 times more return on investment than Voya Solution. However, Calamos Global is 1.54 times more volatile than Voya Solution 2060. It trades about 0.18 of its potential returns per unit of risk. Voya Solution 2060 is currently generating about 0.09 per unit of risk. If you would invest 1,947 in Calamos Global Equity on September 12, 2024 and sell it today you would earn a total of 47.00 from holding Calamos Global Equity or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Global Equity vs. Voya Solution 2060
Performance |
| Timeline |
| Calamos Global Equity |
| Voya Solution 2060 |
Calamos Global and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Global and Voya Solution
The main advantage of trading using opposite Calamos Global and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Global position performs unexpectedly, Voya Solution 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 Solution will offset losses from the drop in Voya Solution's long position.| Calamos Global vs. American Funds New | Calamos Global vs. American Funds New | Calamos Global vs. New Perspective Fund | Calamos Global vs. New Perspective Fund |
| Voya Solution vs. American Funds 2060 | Voya Solution vs. American Funds 2060 | Voya Solution vs. American Funds 2060 | Voya Solution 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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