Correlation Between Calvert Aggressive and Great West
Can any of the company-specific risk be diversified away by investing in both Calvert Aggressive and Great West 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 Aggressive and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Aggressive Allocation and Great West Loomis Sayles, you can compare the effects of market volatilities on Calvert Aggressive and Great West 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 Aggressive with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Aggressive and Great West.
Diversification Opportunities for Calvert Aggressive and Great West
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and Great is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Aggressive Allocation and Great West Loomis Sayles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Loomis and Calvert Aggressive 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 Aggressive Allocation are associated (or correlated) with Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Loomis has no effect on the direction of Calvert Aggressive i.e., Calvert Aggressive and Great West go up and down completely randomly.
Pair Corralation between Calvert Aggressive and Great West
Assuming the 90 days horizon Calvert Aggressive Allocation is expected to generate 0.79 times more return on investment than Great West. However, Calvert Aggressive Allocation is 1.27 times less risky than Great West. It trades about 0.22 of its potential returns per unit of risk. Great West Loomis Sayles is currently generating about 0.15 per unit of risk. If you would invest 2,173 in Calvert Aggressive Allocation on November 1, 2024 and sell it today you would earn a total of 62.00 from holding Calvert Aggressive Allocation or generate 2.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Aggressive Allocation vs. Great West Loomis Sayles
Performance |
| Timeline |
| Calvert Aggressive |
| Great West Loomis |
Calvert Aggressive and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Aggressive and Great West
The main advantage of trading using opposite Calvert Aggressive and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Aggressive position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Calvert Aggressive vs. Great West Loomis Sayles | Calvert Aggressive vs. Walden Smid Cap | Calvert Aggressive vs. Ab Small Cap | Calvert Aggressive vs. Mutual Of America |
| Great West vs. Lord Abbett Intermediate | Great West vs. Virtus Seix Government | Great West vs. Ab Municipal Bond | Great West vs. Franklin Adjustable Government |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |