Correlation Between Calvert Short and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Calvert Short and Eaton Vance 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 Eaton Vance 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 Eaton Vance California, you can compare the effects of market volatilities on Calvert Short and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Short and Eaton Vance.
Diversification Opportunities for Calvert Short and Eaton Vance
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and Eaton is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Short Duration and Eaton Vance California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance California has no effect on the direction of Calvert Short i.e., Calvert Short and Eaton Vance go up and down completely randomly.
Pair Corralation between Calvert Short and Eaton Vance
Assuming the 90 days horizon Calvert Short Duration is expected to generate 0.44 times more return on investment than Eaton Vance. However, Calvert Short Duration is 2.28 times less risky than Eaton Vance. It trades about 0.16 of its potential returns per unit of risk. Eaton Vance California is currently generating about 0.01 per unit of risk. If you would invest 1,475 in Calvert Short Duration on September 4, 2024 and sell it today you would earn a total of 83.00 from holding Calvert Short Duration or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Calvert Short Duration vs. Eaton Vance California
Performance |
| Timeline |
| Calvert Short Duration |
| Eaton Vance California |
Calvert Short and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Short and Eaton Vance
The main advantage of trading using opposite Calvert Short and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Short position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
| Eaton Vance vs. Siit Ultra Short | Eaton Vance vs. Calvert Short Duration | Eaton Vance vs. Barings Active Short | Eaton Vance vs. Vanguard Institutional Short Term |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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