Correlation Between Calvert Short and Barings Active
Can any of the company-specific risk be diversified away by investing in both Calvert Short and Barings Active 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 Barings Active 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 Barings Active Short, you can compare the effects of market volatilities on Calvert Short and Barings Active 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 Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Short and Barings Active.
Diversification Opportunities for Calvert Short and Barings Active
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calvert and Barings is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Short Duration and Barings Active Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Active 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 Barings Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Active Short has no effect on the direction of Calvert Short i.e., Calvert Short and Barings Active go up and down completely randomly.
Pair Corralation between Calvert Short and Barings Active
Assuming the 90 days horizon Calvert Short is expected to generate 1.26 times less return on investment than Barings Active. In addition to that, Calvert Short is 1.02 times more volatile than Barings Active Short. It trades about 0.12 of its total potential returns per unit of risk. Barings Active Short is currently generating about 0.16 per unit of volatility. If you would invest 818.00 in Barings Active Short on August 28, 2024 and sell it today you would earn a total of 104.00 from holding Barings Active Short or generate 12.71% 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. Barings Active Short
Performance |
| Timeline |
| Calvert Short Duration |
| Barings Active Short |
Calvert Short and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Short and Barings Active
The main advantage of trading using opposite Calvert Short and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Short position performs unexpectedly, Barings Active 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 Barings Active will offset losses from the drop in Barings Active's long position.| Calvert Short vs. Calvert Small Cap | Calvert Short vs. Calvert Bond Portfolio | Calvert Short vs. Calvert Emerging Markets | Calvert Short vs. T Rowe Price |
| Barings Active vs. Janus Global Technology | Barings Active vs. Invesco Technology Fund | Barings Active vs. Janus Global Technology | Barings Active vs. Towpath Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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