Correlation Between Voya Index and Calamos Dynamic
Can any of the company-specific risk be diversified away by investing in both Voya Index and Calamos Dynamic 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 Index and Calamos Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Index Plus and Calamos Dynamic Convertible, you can compare the effects of market volatilities on Voya Index and Calamos Dynamic 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 Index with a short position of Calamos Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Calamos Dynamic.
Diversification Opportunities for Voya Index and Calamos Dynamic
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Voya and Calamos is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Plus and Calamos Dynamic Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dynamic Conv and Voya Index 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 Index Plus are associated (or correlated) with Calamos Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dynamic Conv has no effect on the direction of Voya Index i.e., Voya Index and Calamos Dynamic go up and down completely randomly.
Pair Corralation between Voya Index and Calamos Dynamic
Assuming the 90 days horizon Voya Index Plus is expected to generate 0.87 times more return on investment than Calamos Dynamic. However, Voya Index Plus is 1.15 times less risky than Calamos Dynamic. It trades about 0.01 of its potential returns per unit of risk. Calamos Dynamic Convertible is currently generating about -0.22 per unit of risk. If you would invest 2,248 in Voya Index Plus on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Voya Index Plus or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Index Plus vs. Calamos Dynamic Convertible
Performance |
| Timeline |
| Voya Index Plus |
| Calamos Dynamic Conv |
Voya Index and Calamos Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Calamos Dynamic
The main advantage of trading using opposite Voya Index and Calamos Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index position performs unexpectedly, Calamos Dynamic 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 Dynamic will offset losses from the drop in Calamos Dynamic's long position.| Voya Index vs. Ab Small Cap | Voya Index vs. Heartland Value Plus | Voya Index vs. Palm Valley Capital | Voya Index vs. Lsv Small Cap |
| Calamos Dynamic vs. Calamos Convertible Opportunities | Calamos Dynamic vs. Calamos Global Dynamic | Calamos Dynamic vs. Calamos Strategic Total | Calamos Dynamic vs. Calamos LongShort Equity |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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