Correlation Between Calvert International and Voya Solution

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

By analyzing existing cross correlation between Calvert International Opportunities and Voya Solution 2035, you can compare the effects of market volatilities on Calvert International and Voya Solution 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 International with a short position of Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert International and Voya Solution.

Diversification Opportunities for Calvert International and Voya Solution

0.95

Correlation Coefficient

Calvert International  Voya Solution

Almost no diversification

The 3 months correlation between Calvert and Voya is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Calvert International Opportun and Voya Solution 2035 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution 2035 and Calvert International 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 International Opportunities are associated (or correlated) with Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution 2035 has no effect on the direction of Calvert International i.e., Calvert International and Voya Solution go up and down completely randomly.

Pair Corralation between Calvert International and Voya Solution

Assuming the 90 days horizon Calvert International is expected to generate 1.34 times less return on investment than Voya Solution. In addition to that, Calvert International is 1.39 times more volatile than Voya Solution 2035. It trades about 0.16 of its total potential returns per unit of risk. Voya Solution 2035 is currently generating about 0.29 per unit of volatility. If you would invest  1,077  in Voya Solution 2035 on May 1, 2025 and sell it today you would earn a total of  96.00  from holding Voya Solution 2035 or generate 8.91% return on investment over 90 days.

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

Calvert International Opportun  vs.  Voya Solution 2035

Calvert International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert International Opportunities are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Calvert International may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Voya Solution 2035

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Solution 2035 are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Voya Solution may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Calvert International and Voya Solution

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

The idea behind Calvert International Opportunities and Voya Solution 2035 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.