Correlation Between Calvert Developed and Bruce Fund
Can any of the company-specific risk be diversified away by investing in both Calvert Developed and Bruce Fund 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 Developed and Bruce Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Developed Market and Bruce Fund Bruce, you can compare the effects of market volatilities on Calvert Developed and Bruce Fund 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 Developed with a short position of Bruce Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Developed and Bruce Fund.
Diversification Opportunities for Calvert Developed and Bruce Fund
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Bruce is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Developed Market and Bruce Fund Bruce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bruce Fund Bruce and Calvert Developed 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 Developed Market are associated (or correlated) with Bruce Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bruce Fund Bruce has no effect on the direction of Calvert Developed i.e., Calvert Developed and Bruce Fund go up and down completely randomly.
Pair Corralation between Calvert Developed and Bruce Fund
Assuming the 90 days horizon Calvert Developed Market is expected to generate 1.11 times more return on investment than Bruce Fund. However, Calvert Developed is 1.11 times more volatile than Bruce Fund Bruce. It trades about 0.37 of its potential returns per unit of risk. Bruce Fund Bruce is currently generating about 0.1 per unit of risk. If you would invest 2,932 in Calvert Developed Market on November 3, 2024 and sell it today you would earn a total of 173.00 from holding Calvert Developed Market or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calvert Developed Market vs. Bruce Fund Bruce
Performance |
| Timeline |
| Calvert Developed Market |
| Bruce Fund Bruce |
Calvert Developed and Bruce Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Developed and Bruce Fund
The main advantage of trading using opposite Calvert Developed and Bruce Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Developed position performs unexpectedly, Bruce Fund 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 Bruce Fund will offset losses from the drop in Bruce Fund's long position.| Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Mid Cap | Calvert Developed vs. Calvert Short Duration |
| Bruce Fund vs. Mndvux | Bruce Fund vs. Prudential Jennison International | Bruce Fund vs. Fidelity New Markets | Bruce Fund vs. Ohio Variable College |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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