Correlation Between Calvert Global and Aberdeen Ultra
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Aberdeen Ultra 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 Global and Aberdeen Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Aberdeen Ultra Short, you can compare the effects of market volatilities on Calvert Global and Aberdeen Ultra 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 Global with a short position of Aberdeen Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Aberdeen Ultra.
Diversification Opportunities for Calvert Global and Aberdeen Ultra
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calvert and Aberdeen is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Aberdeen Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Ultra Short and Calvert Global 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 Global Energy are associated (or correlated) with Aberdeen Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Ultra Short has no effect on the direction of Calvert Global i.e., Calvert Global and Aberdeen Ultra go up and down completely randomly.
Pair Corralation between Calvert Global and Aberdeen Ultra
Assuming the 90 days horizon Calvert Global Energy is expected to under-perform the Aberdeen Ultra. In addition to that, Calvert Global is 44.7 times more volatile than Aberdeen Ultra Short. It trades about -0.06 of its total potential returns per unit of risk. Aberdeen Ultra Short is currently generating about 0.23 per unit of volatility. If you would invest 1,009 in Aberdeen Ultra Short on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Aberdeen Ultra Short or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Calvert Global Energy vs. Aberdeen Ultra Short
Performance |
| Timeline |
| Calvert Global Energy |
| Aberdeen Ultra Short |
Calvert Global and Aberdeen Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Aberdeen Ultra
The main advantage of trading using opposite Calvert Global and Aberdeen Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Aberdeen Ultra 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 Aberdeen Ultra will offset losses from the drop in Aberdeen Ultra's long position.| Calvert Global vs. Ashmore Emerging Markets | Calvert Global vs. Wells Fargo Funds | Calvert Global vs. Lord Abbett Emerging | Calvert Global vs. Elfun Government Money |
| Aberdeen Ultra vs. 361 Global Longshort | Aberdeen Ultra vs. Ab Global Risk | Aberdeen Ultra vs. Legg Mason Global | Aberdeen Ultra vs. Ab Global Real |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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