Correlation Between Calvert Emerging and Calvert Floating-rate
Can any of the company-specific risk be diversified away by investing in both Calvert Emerging and Calvert Floating-rate 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 Calvert Floating-rate 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 Calvert Floating Rate Advantage, you can compare the effects of market volatilities on Calvert Emerging and Calvert Floating-rate 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 Calvert Floating-rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Calvert Floating-rate.
Diversification Opportunities for Calvert Emerging and Calvert Floating-rate
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calvert and Calvert is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Calvert Floating Rate Advantag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Floating Rate 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 Calvert Floating-rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Floating Rate has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Calvert Floating-rate go up and down completely randomly.
Pair Corralation between Calvert Emerging and Calvert Floating-rate
Assuming the 90 days horizon Calvert Emerging Markets is expected to generate 4.4 times more return on investment than Calvert Floating-rate. However, Calvert Emerging is 4.4 times more volatile than Calvert Floating Rate Advantage. It trades about 0.08 of its potential returns per unit of risk. Calvert Floating Rate Advantage is currently generating about 0.21 per unit of risk. If you would invest 994.00 in Calvert Emerging Markets on August 24, 2024 and sell it today you would earn a total of 217.00 from holding Calvert Emerging Markets or generate 21.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 63.51% |
| Values | Daily Returns |
Calvert Emerging Markets vs. Calvert Floating Rate Advantag
Performance |
| Timeline |
| Calvert Emerging Markets |
| Calvert Floating Rate |
Calvert Emerging and Calvert Floating-rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Emerging and Calvert Floating-rate
The main advantage of trading using opposite Calvert Emerging and Calvert Floating-rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Emerging position performs unexpectedly, Calvert Floating-rate 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 Calvert Floating-rate will offset losses from the drop in Calvert Floating-rate's long position.| Calvert Emerging vs. Western Asset Municipal | Calvert Emerging vs. Qs Large Cap | Calvert Emerging vs. Red Oak Technology | Calvert Emerging vs. Rbc Microcap Value |
| Calvert Floating-rate vs. Oppenheimer Senior Floating | Calvert Floating-rate vs. Oppenheimer Senior Floating | Calvert Floating-rate vs. Floating Rate Fund | Calvert Floating-rate vs. Lord Abbett Inv |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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