Correlation Between Calvert Short and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Calvert Short and Old Westbury 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 Old Westbury 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 Old Westbury California, you can compare the effects of market volatilities on Calvert Short and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Short and Old Westbury.
Diversification Opportunities for Calvert Short and Old Westbury
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and Old is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Short Duration and Old Westbury California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury California 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury California has no effect on the direction of Calvert Short i.e., Calvert Short and Old Westbury go up and down completely randomly.
Pair Corralation between Calvert Short and Old Westbury
Assuming the 90 days horizon Calvert Short Duration is expected to under-perform the Old Westbury. But the mutual fund apears to be less risky and, when comparing its historical volatility, Calvert Short Duration is 1.44 times less risky than Old Westbury. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Old Westbury California is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 980.00 in Old Westbury California on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Old Westbury California or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Calvert Short Duration vs. Old Westbury California
Performance |
| Timeline |
| Calvert Short Duration |
| Old Westbury California |
Calvert Short and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Short and Old Westbury
The main advantage of trading using opposite Calvert Short and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Short position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury'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 |
| Old Westbury vs. Blackrock Short Term Inflat Protected | Old Westbury vs. Cmg Ultra Short | Old Westbury vs. Boston Partners Longshort | Old Westbury vs. Quantitative Longshort 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |