Correlation Between Calumet Specialty and Voya Index

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

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

Diversification Opportunities for Calumet Specialty and Voya Index

0.0

Correlation Coefficient

Calumet Specialty  Voya Index

Pay attention - limited upside

The 3 months correlation between Calumet and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calumet Specialty Products and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Calumet Specialty 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 Calumet Specialty Products are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Calumet Specialty i.e., Calumet Specialty and Voya Index go up and down completely randomly.

Pair Corralation between Calumet Specialty and Voya Index

If you would invest  1,482  in Calumet Specialty Products on February 8, 2024 and sell it today you would earn a total of  149.00  from holding Calumet Specialty Products or generate 10.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.38%
Values	Daily Returns

Calumet Specialty Products  vs.  Voya Index Solution

Calumet Specialty

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calumet Specialty Products are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable primary indicators, Calumet Specialty is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Voya Index Solution

Risk-Adjusted Performance

0 of 100

Modest

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

Pair Trading with Calumet Specialty and Voya Index

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

The idea behind Calumet Specialty Products and Voya Index Solution 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.