Correlation Between Calamos Dynamic and Voya Multi-manager

Can any of the company-specific risk be diversified away by investing in both Calamos Dynamic and Voya Multi-manager 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 Multi-manager 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 Multi Manager Mid, you can compare the effects of market volatilities on Calamos Dynamic and Voya Multi-manager 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 Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Dynamic and Voya Multi-manager.

Diversification Opportunities for Calamos Dynamic and Voya Multi-manager

-0.51

Correlation Coefficient

Calamos Dynamic  Voya Multi-manager

Excellent diversification

The 3 months correlation between Calamos and Voya is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Voya Multi Manager Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Voya Multi-manager go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Voya Multi-manager

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Voya Multi-manager. In addition to that, Calamos Dynamic is 1.26 times more volatile than Voya Multi Manager Mid. It trades about -0.14 of its total potential returns per unit of risk. Voya Multi Manager Mid is currently generating about 0.08 per unit of volatility. If you would invest  941.00  in Voya Multi Manager Mid on December 2, 2024 and sell it today you would earn a total of  20.00  from holding Voya Multi Manager Mid or generate 2.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Calamos Dynamic Convertible  vs.  Voya Multi Manager Mid

Calamos Dynamic Conv

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Dynamic Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound fundamental indicators, Calamos Dynamic is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Voya Multi Manager

Risk-Adjusted Performance

Very Weak

Over the last 90 days Voya Multi Manager Mid has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Calamos Dynamic and Voya Multi-manager

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

The idea behind Calamos Dynamic Convertible and Voya Multi Manager Mid 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.