Correlation Between Calvert Short and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Calvert Short and Sterling Capital 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 Short and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Short Duration and Sterling Capital Short, you can compare the effects of market volatilities on Calvert Short and Sterling Capital 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 Short with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Short and Sterling Capital.
Diversification Opportunities for Calvert Short and Sterling Capital
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Sterling is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Short Duration and Sterling Capital Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Short and Calvert Short 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 Short Duration are associated (or correlated) with Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Short has no effect on the direction of Calvert Short i.e., Calvert Short and Sterling Capital go up and down completely randomly.
Pair Corralation between Calvert Short and Sterling Capital
Assuming the 90 days horizon Calvert Short Duration is expected to generate 0.96 times more return on investment than Sterling Capital. However, Calvert Short Duration is 1.04 times less risky than Sterling Capital. It trades about 0.25 of its potential returns per unit of risk. Sterling Capital Short is currently generating about 0.15 per unit of risk. If you would invest 1,550 in Calvert Short Duration on November 22, 2024 and sell it today you would earn a total of 9.00 from holding Calvert Short Duration or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Short Duration vs. Sterling Capital Short
Performance |
| Timeline |
| Calvert Short Duration |
| Sterling Capital Short |
Calvert Short and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Short and Sterling Capital
The main advantage of trading using opposite Calvert Short and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Short position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Income Fund | Calvert Short vs. Calvert Long Term Income |
| Sterling Capital vs. Calvert High Yield | Sterling Capital vs. Virtus High Yield | Sterling Capital vs. Prudential High Yield | Sterling Capital vs. Tiaa Cref High Yield 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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