Correlation Between Calvert Aggressive and Dodge Stock
Can any of the company-specific risk be diversified away by investing in both Calvert Aggressive and Dodge Stock 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 Dodge Stock 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 Dodge Stock Fund, you can compare the effects of market volatilities on Calvert Aggressive and Dodge Stock 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 Dodge Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Aggressive and Dodge Stock.
Diversification Opportunities for Calvert Aggressive and Dodge Stock
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Dodge is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Aggressive Allocation and Dodge Stock Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge Stock Fund 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 Dodge Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dodge Stock Fund has no effect on the direction of Calvert Aggressive i.e., Calvert Aggressive and Dodge Stock go up and down completely randomly.
Pair Corralation between Calvert Aggressive and Dodge Stock
Assuming the 90 days horizon Calvert Aggressive Allocation is expected to generate 0.94 times more return on investment than Dodge Stock. However, Calvert Aggressive Allocation is 1.06 times less risky than Dodge Stock. It trades about 0.17 of its potential returns per unit of risk. Dodge Stock Fund is currently generating about -0.19 per unit of risk. If you would invest 2,791 in Calvert Aggressive Allocation on September 15, 2024 and sell it today you would earn a total of 42.00 from holding Calvert Aggressive Allocation or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Aggressive Allocation vs. Dodge Stock Fund
Performance |
| Timeline |
| Calvert Aggressive |
| Dodge Stock Fund |
Calvert Aggressive and Dodge Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Aggressive and Dodge Stock
The main advantage of trading using opposite Calvert Aggressive and Dodge Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Aggressive position performs unexpectedly, Dodge Stock 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 Dodge Stock will offset losses from the drop in Dodge Stock's long position.| Calvert Aggressive vs. Calvert Developed Market | Calvert Aggressive vs. Calvert Developed Market | Calvert Aggressive vs. Calvert Short Duration | Calvert Aggressive vs. Calvert International Responsible |
| Dodge Stock vs. Dodge International Stock | Dodge Stock vs. Dodge Balanced Fund | Dodge Stock vs. Dodge Income Fund | Dodge Stock vs. Total Return Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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