Correlation Between Calvert Income and Calvert Floating-rate
Can any of the company-specific risk be diversified away by investing in both Calvert Income 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 Income 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 Income Fund and Calvert Floating Rate Advantage, you can compare the effects of market volatilities on Calvert Income 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 Income with a short position of Calvert Floating-rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Income and Calvert Floating-rate.
Diversification Opportunities for Calvert Income and Calvert Floating-rate
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calvert and Calvert is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Income Fund 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 Income 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 Income Fund 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 Income i.e., Calvert Income and Calvert Floating-rate go up and down completely randomly.
Pair Corralation between Calvert Income and Calvert Floating-rate
Assuming the 90 days horizon Calvert Income is expected to generate 1.4 times less return on investment than Calvert Floating-rate. In addition to that, Calvert Income is 2.17 times more volatile than Calvert Floating Rate Advantage. It trades about 0.08 of its total potential returns per unit of risk. Calvert Floating Rate Advantage is currently generating about 0.23 per unit of volatility. If you would invest 776.00 in Calvert Floating Rate Advantage on August 31, 2024 and sell it today you would earn a total of 124.00 from holding Calvert Floating Rate Advantage or generate 15.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Income Fund vs. Calvert Floating Rate Advantag
Performance |
| Timeline |
| Calvert Income |
| Calvert Floating Rate |
Calvert Income and Calvert Floating-rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Income and Calvert Floating-rate
The main advantage of trading using opposite Calvert Income and Calvert Floating-rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Income 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 Income vs. The Hartford Small | Calvert Income vs. Jpmorgan Small Cap | Calvert Income vs. Tax Managed Mid Small | Calvert Income vs. Vanguard Small Cap Growth |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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