Correlation Between Calamos Dynamic and Voya Jpmorgan

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

Diversification Opportunities for Calamos Dynamic and Voya Jpmorgan

0.75

Correlation Coefficient

Calamos Dynamic  Voya Jpmorgan

Poor diversification

The 3 months correlation between Calamos and Voya is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Dynamic Convertible and Voya Jpmorgan Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Jpmorgan Small 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 Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Jpmorgan Small has no effect on the direction of Calamos Dynamic i.e., Calamos Dynamic and Voya Jpmorgan go up and down completely randomly.

Pair Corralation between Calamos Dynamic and Voya Jpmorgan

Considering the 90-day investment horizon Calamos Dynamic Convertible is expected to under-perform the Voya Jpmorgan. In addition to that, Calamos Dynamic is 1.0 times more volatile than Voya Jpmorgan Small. It trades about -0.18 of its total potential returns per unit of risk. Voya Jpmorgan Small is currently generating about -0.1 per unit of volatility. If you would invest  1,645  in Voya Jpmorgan Small on December 28, 2024 and sell it today you would lose (110.00) from holding Voya Jpmorgan Small or give up 6.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Calamos Dynamic Convertible  vs.  Voya Jpmorgan Small

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 latest inconsistent performance, the Fund's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Voya Jpmorgan Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Voya Jpmorgan Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Calamos Dynamic and Voya Jpmorgan

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

The idea behind Calamos Dynamic Convertible and Voya Jpmorgan Small 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.