Correlation Between Calvert Moderate and Voya Russia

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

By analyzing existing cross correlation between Calvert Moderate Allocation and Voya Russia Fund, you can compare the effects of market volatilities on Calvert Moderate and Voya Russia 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 Calvert Moderate with a short position of Voya Russia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Voya Russia.

Diversification Opportunities for Calvert Moderate and Voya Russia

0.25

Correlation Coefficient

Calvert Moderate  Voya Russia

Modest diversification

The 3 months correlation between Calvert and Voya is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and Voya Russia Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Russia Fund and Calvert Moderate 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 Calvert Moderate Allocation are associated (or correlated) with Voya Russia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Russia Fund has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and Voya Russia go up and down completely randomly.

Pair Corralation between Calvert Moderate and Voya Russia

Assuming the 90 days horizon Calvert Moderate is expected to generate 31.72 times less return on investment than Voya Russia. But when comparing it to its historical volatility, Calvert Moderate Allocation is 15.49 times less risky than Voya Russia. It trades about 0.04 of its potential returns per unit of risk. Voya Russia Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  36.00  in Voya Russia Fund on October 10, 2024 and sell it today you would earn a total of  32.00  from holding Voya Russia Fund or generate 88.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	26.06%
Values	Daily Returns

Calvert Moderate Allocation  vs.  Voya Russia Fund

Calvert Moderate All

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calvert Moderate Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Calvert Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya Russia Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Russia Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Voya Russia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calvert Moderate and Voya Russia

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

The idea behind Calvert Moderate Allocation and Voya Russia Fund 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.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.