Correlation Between Calvert Balanced and Calvert Aggressive
Can any of the company-specific risk be diversified away by investing in both Calvert Balanced and Calvert Aggressive 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 Balanced and Calvert Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Balanced Portfolio and Calvert Aggressive Allocation, you can compare the effects of market volatilities on Calvert Balanced and Calvert Aggressive 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 Balanced with a short position of Calvert Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Balanced and Calvert Aggressive.
Diversification Opportunities for Calvert Balanced and Calvert Aggressive
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Calvert is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Balanced Portfolio and Calvert Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Aggressive and Calvert Balanced 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 Balanced Portfolio are associated (or correlated) with Calvert Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Aggressive has no effect on the direction of Calvert Balanced i.e., Calvert Balanced and Calvert Aggressive go up and down completely randomly.
Pair Corralation between Calvert Balanced and Calvert Aggressive
Assuming the 90 days horizon Calvert Balanced Portfolio is expected to generate 0.85 times more return on investment than Calvert Aggressive. However, Calvert Balanced Portfolio is 1.17 times less risky than Calvert Aggressive. It trades about 0.14 of its potential returns per unit of risk. Calvert Aggressive Allocation is currently generating about 0.11 per unit of risk. If you would invest 4,050 in Calvert Balanced Portfolio on August 28, 2024 and sell it today you would earn a total of 718.00 from holding Calvert Balanced Portfolio or generate 17.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Balanced Portfolio vs. Calvert Aggressive Allocation
Performance |
| Timeline |
| Calvert Balanced Por |
| Calvert Aggressive |
Calvert Balanced and Calvert Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Balanced and Calvert Aggressive
The main advantage of trading using opposite Calvert Balanced and Calvert Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Balanced position performs unexpectedly, Calvert Aggressive 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 Calvert Aggressive will offset losses from the drop in Calvert Aggressive's long position.| Calvert Balanced vs. Calvert Large Cap | Calvert Balanced vs. Calvert Equity Portfolio | Calvert Balanced vs. Calvert Bond Portfolio | Calvert Balanced vs. Calvert Balanced Portfolio |
| Calvert Aggressive vs. Calvert Developed Market | Calvert Aggressive vs. Calvert Developed Market | Calvert Aggressive vs. Calvert Short Duration | Calvert Aggressive vs. Calvert International Responsible |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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