Correlation Between Calvert Global and Federated Kaufmann
Can any of the company-specific risk be diversified away by investing in both Calvert Global and Federated Kaufmann 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 Federated Kaufmann 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 Federated Kaufmann Fund, you can compare the effects of market volatilities on Calvert Global and Federated Kaufmann 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 Federated Kaufmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Federated Kaufmann.
Diversification Opportunities for Calvert Global and Federated Kaufmann
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calvert and Federated is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Federated Kaufmann Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Kaufmann 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 Federated Kaufmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Kaufmann has no effect on the direction of Calvert Global i.e., Calvert Global and Federated Kaufmann go up and down completely randomly.
Pair Corralation between Calvert Global and Federated Kaufmann
Assuming the 90 days horizon Calvert Global Energy is expected to generate 0.17 times more return on investment than Federated Kaufmann. However, Calvert Global Energy is 6.0 times less risky than Federated Kaufmann. It trades about 0.12 of its potential returns per unit of risk. Federated Kaufmann Fund is currently generating about -0.17 per unit of risk. If you would invest 1,091 in Calvert Global Energy on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Calvert Global Energy or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Federated Kaufmann Fund
Performance |
| Timeline |
| Calvert Global Energy |
| Federated Kaufmann |
Calvert Global and Federated Kaufmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Federated Kaufmann
The main advantage of trading using opposite Calvert Global and Federated Kaufmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global position performs unexpectedly, Federated Kaufmann 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 Federated Kaufmann will offset losses from the drop in Federated Kaufmann's long position.| Calvert Global vs. Ab Global Risk | Calvert Global vs. Lgm Risk Managed | Calvert Global vs. Western Asset High | Calvert Global vs. Ab Global Risk |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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