Correlation Between Voya Midcap and Calamos Global

Can any of the company-specific risk be diversified away by investing in both Voya Midcap and Calamos Global 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 Midcap and Calamos Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Voya Midcap Opportunities and Calamos Global Equity, you can compare the effects of market volatilities on Voya Midcap and Calamos Global 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 Midcap with a short position of Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Midcap and Calamos Global.

Diversification Opportunities for Voya Midcap and Calamos Global

0.82

Correlation Coefficient

Voya Midcap  Calamos Global

Very poor diversification

The 3 months correlation between Voya and Calamos is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Voya Midcap Opportunities and Calamos Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Equity and Voya Midcap 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 Midcap Opportunities are associated (or correlated) with Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Equity has no effect on the direction of Voya Midcap i.e., Voya Midcap and Calamos Global go up and down completely randomly.

Pair Corralation between Voya Midcap and Calamos Global

Assuming the 90 days horizon Voya Midcap is expected to generate 4.25 times less return on investment than Calamos Global. In addition to that, Voya Midcap is 2.41 times more volatile than Calamos Global Equity. It trades about 0.03 of its total potential returns per unit of risk. Calamos Global Equity is currently generating about 0.29 per unit of volatility. If you would invest  1,909  in Calamos Global Equity on September 19, 2024 and sell it today you would earn a total of  71.00  from holding Calamos Global Equity or generate 3.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.45%
Values	Daily Returns

Voya Midcap Opportunities  vs.  Calamos Global Equity

Voya Midcap Opportunities

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Midcap Opportunities are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Voya Midcap showed solid returns over the last few months and may actually be approaching a breakup point.

Calamos Global Equity

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Calamos Global Equity are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calamos Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Voya Midcap and Calamos Global

The main advantage of trading using opposite Voya Midcap and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Midcap position performs unexpectedly, Calamos Global 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 Global will offset losses from the drop in Calamos Global's long position.

The idea behind Voya Midcap Opportunities and Calamos Global Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.