Correlation Between Voya High and Calamos Opportunistic
Can any of the company-specific risk be diversified away by investing in both Voya High and Calamos Opportunistic 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 Voya High and Calamos Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Calamos Opportunistic Value, you can compare the effects of market volatilities on Voya High and Calamos Opportunistic 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 Voya High with a short position of Calamos Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Calamos Opportunistic.
Diversification Opportunities for Voya High and Calamos Opportunistic
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Calamos is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Calamos Opportunistic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Opportunistic and Voya High 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 Voya High Yield are associated (or correlated) with Calamos Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Opportunistic has no effect on the direction of Voya High i.e., Voya High and Calamos Opportunistic go up and down completely randomly.
Pair Corralation between Voya High and Calamos Opportunistic
Assuming the 90 days horizon Voya High is expected to generate 8.44 times less return on investment than Calamos Opportunistic. But when comparing it to its historical volatility, Voya High Yield is 5.81 times less risky than Calamos Opportunistic. It trades about 0.08 of its potential returns per unit of risk. Calamos Opportunistic Value is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,266 in Calamos Opportunistic Value on September 19, 2024 and sell it today you would earn a total of 82.00 from holding Calamos Opportunistic Value or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. Calamos Opportunistic Value
Performance |
| Timeline |
| Voya High Yield |
| Calamos Opportunistic |
Voya High and Calamos Opportunistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Calamos Opportunistic
The main advantage of trading using opposite Voya High and Calamos Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High position performs unexpectedly, Calamos Opportunistic 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 Calamos Opportunistic will offset losses from the drop in Calamos Opportunistic's long position.| Voya High vs. Voya Bond Index | Voya High vs. Voya Bond Index | Voya High vs. Voya Limited Maturity | Voya High vs. Voya Limited Maturity |
| Calamos Opportunistic vs. Virtus High Yield | Calamos Opportunistic vs. Janus High Yield Fund | Calamos Opportunistic vs. Strategic Advisers Income | Calamos Opportunistic vs. Voya High Yield |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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