Correlation Between Calvert Short and State Street
Can any of the company-specific risk be diversified away by investing in both Calvert Short and State Street 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 State Street 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 State Street Aggregate, you can compare the effects of market volatilities on Calvert Short and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Short and State Street.
Diversification Opportunities for Calvert Short and State Street
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and STATE is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Short Duration and State Street Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Aggregate 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Aggregate has no effect on the direction of Calvert Short i.e., Calvert Short and State Street go up and down completely randomly.
Pair Corralation between Calvert Short and State Street
Assuming the 90 days horizon Calvert Short Duration is expected to generate 0.4 times more return on investment than State Street. However, Calvert Short Duration is 2.48 times less risky than State Street. It trades about 0.13 of its potential returns per unit of risk. State Street Aggregate is currently generating about 0.03 per unit of risk. If you would invest 1,402 in Calvert Short Duration on August 29, 2024 and sell it today you would earn a total of 155.00 from holding Calvert Short Duration or generate 11.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Short Duration vs. State Street Aggregate
Performance |
| Timeline |
| Calvert Short Duration |
| State Street Aggregate |
Calvert Short and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Short and State Street
The main advantage of trading using opposite Calvert Short and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Short position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Calvert Short vs. Permanent Portfolio Class | Calvert Short vs. HUMANA INC | Calvert Short vs. Aquagold International | Calvert Short vs. Barloworld Ltd ADR |
| State Street vs. Calvert Short Duration | State Street vs. Federated Short Intermediate Duration | State Street vs. Ab Select Longshort | State Street vs. Siit Ultra Short |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |