Correlation Between Calvert Emerging and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Calvert Emerging and Thrivent High 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 Emerging and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Emerging Markets and Thrivent High Yield, you can compare the effects of market volatilities on Calvert Emerging and Thrivent High 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 Emerging with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Thrivent High.
Diversification Opportunities for Calvert Emerging and Thrivent High
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calvert and Thrivent is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield and Calvert Emerging 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 Emerging Markets are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Thrivent High go up and down completely randomly.
Pair Corralation between Calvert Emerging and Thrivent High
Assuming the 90 days horizon Calvert Emerging is expected to generate 2.2 times less return on investment than Thrivent High. In addition to that, Calvert Emerging is 4.13 times more volatile than Thrivent High Yield. It trades about 0.02 of its total potential returns per unit of risk. Thrivent High Yield is currently generating about 0.22 per unit of volatility. If you would invest 404.00 in Thrivent High Yield on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Thrivent High Yield or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Calvert Emerging Markets vs. Thrivent High Yield
Performance |
| Timeline |
| Calvert Emerging Markets |
| Thrivent High Yield |
Calvert Emerging and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Emerging and Thrivent High
The main advantage of trading using opposite Calvert Emerging and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Emerging position performs unexpectedly, Thrivent High 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 Thrivent High will offset losses from the drop in Thrivent High's long position.| Calvert Emerging vs. Calvert Developed Market | Calvert Emerging vs. Calvert Developed Market | Calvert Emerging vs. Calvert Short Duration | Calvert Emerging vs. Calvert International Responsible |
| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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