Correlation Between Calvert Small and Cambiar Smid
Can any of the company-specific risk be diversified away by investing in both Calvert Small and Cambiar Smid 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 Small and Cambiar Smid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Small Cap and Cambiar Smid Fund, you can compare the effects of market volatilities on Calvert Small and Cambiar Smid 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 Small with a short position of Cambiar Smid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Small and Cambiar Smid.
Diversification Opportunities for Calvert Small and Cambiar Smid
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Cambiar is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Small Cap and Cambiar Smid Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Smid and Calvert Small 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 Small Cap are associated (or correlated) with Cambiar Smid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Smid has no effect on the direction of Calvert Small i.e., Calvert Small and Cambiar Smid go up and down completely randomly.
Pair Corralation between Calvert Small and Cambiar Smid
Assuming the 90 days horizon Calvert Small is expected to generate 1.28 times less return on investment than Cambiar Smid. In addition to that, Calvert Small is 1.03 times more volatile than Cambiar Smid Fund. It trades about 0.17 of its total potential returns per unit of risk. Cambiar Smid Fund is currently generating about 0.22 per unit of volatility. If you would invest 2,250 in Cambiar Smid Fund on November 4, 2024 and sell it today you would earn a total of 80.00 from holding Cambiar Smid Fund or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Calvert Small Cap vs. Cambiar Smid Fund
Performance |
| Timeline |
| Calvert Small Cap |
| Cambiar Smid |
Calvert Small and Cambiar Smid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Small and Cambiar Smid
The main advantage of trading using opposite Calvert Small and Cambiar Smid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Small position performs unexpectedly, Cambiar Smid 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 Cambiar Smid will offset losses from the drop in Cambiar Smid's long position.| Calvert Small vs. Calvert International Equity | Calvert Small vs. Calvert Equity Portfolio | Calvert Small vs. Calvert Capital Accumulation | Calvert Small vs. Calvert Large Cap |
| Cambiar Smid vs. Rbb Fund | Cambiar Smid vs. Pnc Balanced Allocation | Cambiar Smid vs. Rational Strategic Allocation | Cambiar Smid vs. Rbc Global Equity |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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